An Australian Expatriate based in Singapore seeking a combined loan to finance the purchase and construction of 3 of his investment properties in several residential suburbs in Victoria, Australia.
One of the biggest challenges for this case was to broker construction financing for 3 house and land purchases concurrently in various developments which were scheduled to settle on different dates. With the borrower being an Australian expatriate working in Singapore and earning SGD$ income, we faced challenges with rigid criteria to attain financing from major Australian banks initially, also were presented with multiple issues to the borrower’s multi-jurisdictional tax status and on how we would best favourably apply this to the income profile, while simultaneously ensuring minimal borrowing costs are involved in the process.
In order to successfully broker the same terms and conditions across all three loans at the same time, we negotiated with the bank to draw on a cross-collateralized structure, allowing us to combine all securities into a single facility with a total property value of $1,555,000, ensuring all loans are assessed by the same credit team with uniform credit requirements.
Constant fluid liaison with the victorian head of business development for ANZ and other stakeholders was also indispensable to establish clear understanding of our client’s requirements on top of the complexity of the income profile.
In the end, with a uniform credit policy applied, we were able to secure all 3 loans with over 70% LVR combined under 1 facility with one single complete submission. Additionally, our client benefited from significant savings on mortgage fees, minimised capital input, and favourable interest rates from this particular structure.
The loans are now completely funded. All 3 properties are fully constructed and tenanted. The rental earnings are supplementing the monthly loan instalments.
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