balmain + new zealand + big deals
A BalmainNZ investment mortgage that works
Example: Interest only versus table mortgage
| Property Valuation: | $7.5 million |
| Net Rental @ 8.25% Yield: | $618,750.00 pa |
| Mortgage Amount at 70% LVR | $5.25 million |
| 10 Year Principal & Interest (Table) Mortgage Annual Cost @ 9.5% | $548,129.00 pa |
| Annual Surplus Rental Cashflow over 5 years | $353,105.00 |
| Interest Only Interest Cost @ 9.5% | $498,750.00 |
| Annual Surplus Rental Cashflow | $600,000.00 |
| 5 YEAR Surplus Rental Cashflow vs Table Mortgage Surplus | 170% |
BalmainNZ first mortgage commercial property loans provide;
- Optimum loan:security leverage to a maximum of 70%
- enables strong rental properties to maximise debt leverage, minimise cash/equity.
- Minimum stand-alone "net rental cover" requirement of 1.0 times the " interest cost" however subject to a 1.25-1.3 times all-sources interest cover.
- Stand-alone credit assessment for well-tenanted investment properties with realistic and consistent credit criteria supports the long-term property investor.
- Stand-alone mortgage documentation options without collateral securities.
- Singular mortgage transactions for securities with strong rental income avoids entangling other portfolio properties and ongoing financial transactions.
- Fixed interest options of 1-5 years.
- Ability to lock-in attractive longer term interest rates and minimise debt-servicing costs.
- Loan terms up to 5 years.
- 5 year, renewable mortgage terms provides consistency of funding for the long term commercial property investor.
- Interest-Only mortgage servicing.
- Interest-Only mortgage repayments MAXIMISES NET RENTAL CASHFLOW providing the investor greater control of the investment, allows reinvestment such as property maintenance, further development of the subject property, additional reinvestment into other property purchases or investments, and provision of cash reserves to smooth potential tenancy vacancies in the future.
balmain + new zealand + big deals
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