Lending
Loans with GR Finance
A major part of GR Finance's business is providing an alternative to the mainstream lending market.
We work directly with borrowers or their advisers, to arrange loans and finance that meets borrowers' specific funding needs. Finance is available for various purposes, including the purchase of residential and commercial property, property construction and development, and funding for commercial purposes such as new and existing business development.
Generally, the terms of the loans provided by GR Finance range from between 3 and 12 months. During the term of the loan, borrowers are required to:
- meet interest payments,
- and in some cases, principal reductions as required.
Lending criteria
It is GR Finance's policy to maintain prudent lending practices in assessing loan applications received. All applications received, including existing loans that are to be renewed, are assessed by the Lending Committee.
Each loan will have its own unique terms and conditions. However, each loan must comply with GR Finance's Lending Criteria at the time of approval. The Lending Criteria at the date of issue of the Prospectus, mandated by the Board of Directors, are summarised as follows:
Registered first mortgages over real property are the preferred form of security and are taken where possible.
Where a property offered as security is subject to a prior ranking mortgage, a subsequent mortgage may be taken.
Where real property is the only form of security provided, maximum LVRs outlined below apply to the following types of property:
- residential (85%);
- commercial (75%);
- construction and development (75% of combined land value and actual construction and development costs); and
- rural (60%).
Where no mortgage is granted over real property, or the value of that real property security is insufficient to satisfy the borrower's loan requirement, other forms of security may be taken by GR Finance. These may include guarantees from third parties, fixed and floating charges over the assets of the borrower and/or third parties, and charges over shares and/or units in listed companies and trusts (where quoted on a recognised stock exchange), unlisted public companies and trusts.
GR Finance may lend to a borrower based on the borrower's balance sheet; such loans must be supported by a registered fixed and floating charge, and where appropriate, other forms of security such as guarantees from directors of the borrowing entity or entities associated with the borrower. Generally, GR Finance requires the borrower's annualised interest cover to be at least 1.2 times net profit, but this requirement may be varied with approval of the Lending Committee.
"Low-doc" loans - where full financial data is not available, the following maximum LVRs will apply:
- residential property - 80%;
- commercial property - 65%.
A valuation for any real property offered to the Company as security in support of a loan must be obtained from an independent registered valuer who is on GR Finance's panel of approved valuers.
Construction and development loans - an independent quantity surveyor's report is obtained prior to initial drawdown stage and prior to each progressive drawdown.
The Board may review and amend these Lending Criteria from time to time.
Loan applications
Please phone freecall 1800 007 072 to discuss your loan requirements, or click here to download a copy of our loan application form.
