Construction Development

Specialised Commercial Business Loans

At Ray Backhouse - Lifespan Financial Services we can arrange construction funding for all asset types, including commercial, office, industrial, retail, residential and hospitality property developments throughout Australia. We can also obtain funding for land subdivisions. Nothing is beyond our means.

Drawing on our in-house expertise, we can assist with finance for the complete development cycle. We can provide funding for land acquisition through to arranging take-out finance upon completion of the development.

Where standard financing is unsuitable, Ray Backhouse – Lifespan Financial Services can guide you through structured financing, mezzanine debt and equity or joint venture options. There are options for any situation or circumstance – nothing is insurmountable.

Construction and Development Loans

The Ray Backhouse - Lifespan Financial Services team can arrange development funding throughout Australia for:

  • Retail Properties & Shopping Center Premises
  • Industrial Properties & Complexes
  • Commercial Properties & Business Parks
  • Medical and Healthcare properties

Our specially trained team members have access to an extensive network of Banks, Non-Bank Lending Institutions and Private Lenders to help find a better financial solution for you and your business.

Interest Rates and Fees

Commercial mortgage interest rates are quoted in various formats by different lenders within the market making it difficult to accurately compare rates when searching for the most beneficial package.

For instance, it is common practice to use a base indicator in the form of a swap rate based on the term of the loan e.g. a 90 Day Bank Bill Swap Rate. A risk margin is then added to the base indicator rate to provide the borrower with a final interest rate.

Alternatively, interest rates may be quoted using the Lender's 'Cost of Funds' or 'Bill Rate,' which will include a Treasury Margin to compensate their Treasury Department for procuring the funds from the wholesale market. An applicable risk margin is then added to provide a final interest rate.

Some lenders may charge a Line Fee in addition to any risk margin. A Line Fee is charged on the Facility Limit, regardless of the outstanding loan balance.

Therefore, it is very important when comparing rates that you are aware of the base indicator rate, applicable risk margin, and all the fees that may be levied on the loan, e.g. Line Fee, Rollover Fee, etc. to correctly assess the true cost of the loan.

Another important consideration is that commercial loans can be more costly to establish, as there are a number of professional services that are utilised during the approval process:

  • Solicitor
  • Finance Broker
  • Property Valuer
  • Quantity Surveyor

Therefore, it is imperative that you consult with one of our financial consultants, who will be completely conversant with these particular requirements and intricacies.

Ray Backhouse Lifespan Financial Services

Finance Broker Licence No. 3292

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