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Loan to Value Ratios


The table below provides indicative LVRs for:

  • Commercial property security
  • Residential property security
  • Going concerns
  • Other security types

It is a basic guide only. Some security types and various conditions and exceptions (which apply as per Commonwealth Bank Credit Policy) have been omitted for simplification.

These figures represent normal LVRs for business products. Applications involving unsecured content may be considered depending on servicing strength and other creditworthiness criteria.


Details


Security

LVR

Vacant land - commercial

Vacant land - residential

Residential land to be subdivided


50%

80%

50%

Development properties

The land LVR of 50% applies unless certain conditions are met.

Note: Conditions regarding application of higher margins to development properties essentially relate to levels of pre-leasing or pre-sales. These vary depending on whether the development is residential, industrial, retail or for office presmises.

If conditions are met:
  • For credit facilities over $250,000, up to 70% of "as if complete"

Completed commercial developments


For credit facilities over $250,000, up to 70% of "as if complete"

Residential dwelling


80%

Rural residential properties larger than 0.5 hectares are generally considered 'rural

Classified as a dwelling (not income producing):
If conditions are met 80%
If conditions are not met: 50%

Classified as a farm (income producing)
Valuer General's valuation: Up to 70%
Other valuation and some lease types: 60%

Going concerns - Base security LVR (must meet certain criteria and the position will be reviewed annually)

Leasehold tenure up to 50%
Freehold tenure up to 70%

Pharmacies 80%

Going concerns - Other conditions/policy

Some types of enterprise may be subject to other specialised conditions/policy

Registered Company Charge, Bill of Sale & Equitable Mortgage

Lending margin for assets secured by either a Registered Company Charge or Bill of Sale and Equitable Mortgage

Base: 20%

Receivables

Domestic receivables: 80%

LVRs against other business assets

  • Aircraft: Nil
  • Delivery Runs: Nil
  • Gaming Machine Licences: Nil
  • Liquor Licences: Nil
  • Goodwill (professional practice): 100%
  • Ships: 40%
  • Taxi Cab licences: 20% - 50%
  • Hire Car Plates: 20%

Rent rolls

40% (subject to various conditions)

Management rights

Up to 70% against the valuation of the Management Rights and the Managers Residence (subject to various conditions)

Guarantees

100% (from financial institutions)

Shares (listed on ASX)

50%


     

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