As your time is valuable, these FAQs will hopefully answer your query in just a few seconds.
Applications and approvals
It’s helpful to be able to describe:
- the type of property being provided as security
- value of the property
- its location
- the required loan amount
- the loan purpose (purchase, refinance, equity release)
- other loans outstanding
- income available to service all liabilities
- whether tax returns and financial statements are available
- any other important information such as credit history.
- Borrower background including income sources, business and experience.
If all information supporting the loan application is provided, we will typically provide a formal approval (subject to an independent valuation of the security property) within 24-48 hours for straight forward applications and 3-4 business days for those which may be more involved. This may vary according to the complexity of the transaction.
Often it’s a good idea to have the property valued before applying for a loan, however, make sure the valuer is acceptable to the lender/s you’re considering using and that they’re prepared to re-address the valuation to the lender. Less than 10 per cent of borrowers take this approach and generally only for refinances or equity release.
We retain a diverse panel of experienced commercial property valuers and will appoint one to conduct an independent valuation on the property that is addressed to us. Our valuation instructions are the same for all loans and seek an assessment of current market value under normal buyer/seller circumstances.
An independent valuer appointed by us will inspect the property and assess its value based on:
- recent sales of comparable properties in the area or the “vacant possession” approach which is especially relevant to owner-occupied properties.
- a capitalisation approach that derives a value relative to the actual or likely rental income produced.
We will only take into account income as shown in financial statements and on bank statements or BAS returns. Unreported or unverifiable cash receipts will not be included in our loan servicing calculations (Not required for Quick Doc or Mid Doc loans).
Where a company or trust is a party to a loan, personal guarantees serve to ensure the responsibility for maintaining the loan extends to the key people who own and/or operate that entity. All loans not in personal names must be supported by the personal guarantees of all directors (some limited exceptions apply including SMSF loans less than 50% LVR).
It’s vital that all borrowers receive sound, impartial advice prior to signing loan documentation particularly in relation to personal guarantees. With recent changes in land and property legislation, solicitors play an important role in verifying the identity of the parties signing the mortgage which is now required by most states and territories.
This second step serves to meet a legal requirement for solicitors witnessing the signing of mortgage documentation to confirm the identification of those parties to the loan.
Borrowing and security
Minimum population base of 20,000 applies in security locations for our Full Doc and Mid Doc loans. For our Quick Doc and SMSF loans this population requirement increases to 50,000.
We’ll lend against typical income producing commercial properties such as shops, offices, industrial units, warehouses and some other specialised commercial premises. Please refer to our Eligible Security Types information sheet.
We don’t lend against some specialised properties such as aged care, sporting facilities, service stations, caravan parks, rural, agricultural or properties in remote/arid regions or construction/development properties. Please refer to our Eligible Security Types information sheet.
Vacant land isn’t acceptable as primary security. We’ll only accept vacant land where it’s used as supporting security in addition to a typical commercial property of greater value.
No, we only lend against completed commercial properties.
Non-resident Australian citizens can apply for a loan with us as long as they have on-shore income sufficient to meet our debt servicing criteria. Please note that servicing criteria for non-residents varies from standard loan servicing criteria.
We don’t provide home loan finance for owner-occupiers, however, we do provide finance for other types of residentially secured lending.
Yes, we finance residential rental property where the purpose is for investment or another commercial/business use.
Industry associations, the MFAA and the FBAA, both offer referrals to qualified finance brokers. Alternatively, we’ll be happy to refer you to an accredited Thinktank finance broker in your area.
Yes, we offer loans to self managed superannuation funds up to $3 million and 75% LVR. Please refer to our Overview of SMSF Commercial Loans.
No, we don’t offer non-conforming, sub-prime or no doc loans.
We don’t provide traditional overdraft facilities but do offer a Line of Credit facility up to $500,000.
No, we don’t offer an offset account at this time.
For interest only loans, interest is calculated one month in advance based on the loan balance and borrower interest rate on that day. Interest on principal and interest loans is calculated daily in arrears.
Yes. Please note though, that principal reductions in excess of $50,000 per annum in the first five years of the loan may attract an early prepayment fee depending on the loan product selected. The best method is via BPay by following the instructions on your Welcome Letter.
Yes, we offer fixed rates between one and five years.
If your loan isn’t fully drawn or you have made extra repayments, redraw is available on all variable rate loans except for SMSF loans where redraw is not permitted under super fund legislation.
Yes, we offer online access to all borrowers. Please contact our office or download the application form from our helpful forms and tools.
You’ll receive a loan statement every six months in early January and early July. If you require transaction information more frequently, you can gain internet access to all your loan information.
Please ensure you type your username and user ID exactly as shown in the letter you received. If you’re still experiencing difficulties, please contact our office.
You’ll need to email or phone our office for copies of previous loan statements. You’re able to copy and paste from the transaction listing in Xchange into another program such as Microsoft Excel.
Finance broker / partner
All introducers must be accredited with Thinktank either directly or through an affiliated aggregation group prior to a loan settling. Loan applications may be submitted while the accreditation process is under way. Please note, SMSF loan accreditation has separate requirements.
Yes, separate and individual accreditation is required before SMSF loans can be submitted. Prior SMSF lending experience or completion of a recognised SMSF training course is required before SMSF accreditation will be progressed.
Yes, we offer highly valued introducer focused commercial lending courses which carry MFAA recognised CPD points. Please contact our office or your allocated BDM for more information.
There are no fees to invest in the bonds nor to redeem your capital once the 12 month term has expired. Should you wish to redeem your capital early a 2% early redemption fee may apply. There is a management fee or 0.70% p.a. which is taken from the interest paid by the borrower. All quoted returns are net of fees.
To invest in Thinktank’s Income &/or High Yield Trust please click here to be taken to the application page, alternatively click here for the application documents.
If you wish to have your capital returned to you at the end of the 12 month term, you must notify Thinktank at least 30 (but no more than 90) days prior to the monthly payment that immediately follows the end of the 12 month term.
Loans to borrowers are secured against the property themselves or another form of eligible security types (see Eligible Security Types information sheet link). Loans in the Income Trust are secured by a first-ranking mortgage and loans in the High Yield Trust are secured by a second-ranking mortgage.
Yes both trusts have a dynamic loss provision. The Income Trust has a loss provision up to 1% of the loan pool balance & the High Yield Trust has a loss provision up to 2% of the loan pool balance.
Wholesale/sophisticated investors can invest in Thinktank’s Income Trust or High Yield Trust. Thinktank is offering investors a 12 month bond in either/both trusts whereby investors receive monthly coupon interest payments and are able to redeem their capital after the 12 months or roll over for another 12 month investment. The funds invested are then lent to borrowers who wish to purchase a commercial property.
The minimum investment in either trust is $10,000.
The minimum term for any investment is 12 months, investors can chose to redeem their capital investment or to roll-over their capital for another 12 months. Any redemption requests need to be received at least 30 (but no more than 90) days prior to the end of the 12 months.
Thinktank will post monthly reports on collateral performance on our website for investors to review. At the end of the financial year Thinktank will provide investors with a summary of interest earned.
Investment in the Income Trust produce annual effective returns of 5.33% p.a. and investment in the High Yield Trust produce annual effective returns of 8.55% p.a.
Thinktank can accept investments from wholesale & sophisticated investors. Investors who meet this criteria can invest under their own name, their company, SMSF or trust.
Thinktank is Australia’s leading specialist commercial property finance provider. Established in 2006, Thinktank has financed more than $1.3 billion in retail, office & industrial commercial property loans to Australian businesses and experienced property investors with a proud record marked by excellence in credit quality management, loan portfolio performance and stakeholder relations.
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