Menu

Lending Scenarios

All Banks and Institutions have varying requirements when assessing the amount they will lend on any purchase and the following two examples are provided as a guide only.

Example 1 - 50% of total costs

Purcahse price of Unit:
$400,000
Purcahse price of Rights:
$1,100,000
Stamp Duty, Legals:
$75,000         (estimate 5%)
Total:
$1,575,000
Borrowing Limit:
$787,500
Cash Required:
$787,500
Total:
$1,575,000

Example 2 - 80% of unit cost and 55% of rights

Total costs in line with the above - $1,575,000.

Borrowing Limit

80% of Unit:
$320,000
55% of Rights:
$605,000
Total:
$925,000
Cash Required:
$650,000
Total:
$1,575,000
  • The above examples have been assessed on the basis that you will have cash as equity for your purchase.
  • Most financiers will be prepared to consider other security in lieu of cash equity.
  • When alternative security is offered, serviceability of borrowing amount will be the key assessment.
  • Lending Ratios to 75% of total purchase price are also available with some financiers.

"I can’t speak highly enough of Barry Maller, at Catalina Finance. Being new to the management rights industry we were on a steep learning curve, but from day one Barry was always on hand to provide exceptional guidance and support. During the selection process Barry’s years of experience and knowledge showed as he considered all the associated risks with each of the businesses. At no time did we feel pressured and we really appreciated his patience and honesty throughout the entire process."

Craig & Robyn - Brissett, Akama Resort, Hervey Bay