Competitive loan package

RBF's commercial loan package is tailored to meet the needs of business/investors. The product offers the following:

Certainty - The interest rate can be fixed for up to three years.

Flexibility - Loans are usually interest only with the right for the borrower to make voluntary principal repayments.

Equity - Loans are generally offered up to 70% of RBF's valuation of freehold property, thereby providing efficient use of business/investor equity.

Low fees - Loan establishment fees are competitive and there are no ongoing fees during the three-year term of the loan.

Competitive interest rates - RBF's efficient loan administration structure allows RBF to charge competitive interest rates.

Eligibility

RBF provides first mortgage finance on the security of a diverse range of premises, including offices, shops, businesses, warehouses, residential investment properties, hotels and motels.

RBF will also consider construction finance on these properties where the loan required is $500,000 or greater.

Applications will be considered in respect of suitable freehold properties situated in the major urban areas of Tasmania such as Hobart, Launceston, Devonport and Burnie. Other locations may be considered on merit.

RBF does not usually assist with the financing of unimproved land, unless the security offered for the loan also consists of the types of premises outlined above.

An applicant need not be a member of the Retirement Benefits Fund.

Providing key investment criteria are satisfied, an applicant may apply for a commercial loan in an individual, corporate or trustee capacity. In the case of private companies, directors of the company will be required to join in the mortgage as guarantors.

Amount of loan

Loans are generally provided up to 70% of RBF's valuation of the property or properties offered as security. In the case of hotels, RBF will lend up to 70% of the value of the combined land and buildings excluding goodwill. The minimum loan is $50,000.

Interest rates

To obtain the current interest rates on offer by RBF contact our Loans Officer by telephoning (03) 6233 3116.

Fees

Establishment fees
Establishment fees are based on a sliding scale depending upon the amount of the loan. The minimum fee is $250 for loans up to $250,000.

Valuation fees
An independent valuation will usually be required with respect to the property or properties offered as security. RBF will arrange for one of its panel of valuers to undertake the valuation(s) with the cost to be met by the applicant.

Legal fees
Costs associated with the finalisation and registration of RBF's standard mortgage documentation are to be met by the applicant.

Other fees
There are no accounting, bank fees or ongoing monthly service fees.

Loan terms

Loans are approved initially for a fixed three-year term. The interest rate can be fixed for this term.

Loans are usually reviewed every three years. Costs associated with the review, which may include a renegotiation fee and/or a valuation fee, are to be met by the borrower.

Payments

Interest
Interest payments are generally payable half-yearly in arrears for loans up to $1 million. Payments are more frequent for larger loans.

Interest is calculated daily on the outstanding balance.

An account is forwarded to the borrower shortly before each due date. Payment must be received within fourteen (14) days of the due date to avoid additional interest charges being imposed.

Principal
Loans are usually interest only with the borrower having the right to make voluntary principal repayments. An additional interest charge will apply for principal repayments in excess of an agreed limit, with the limit dependent on whether interest is payable half-yearly, quarterly or monthly.

For example, where interest is payable half-yearly, the borrower may repay an amount not exceeding one sixth of the original sum borrowed on any interest due date during the three-year term. Interest is then calculated on the reducing balance from the date of payment.

Further information

For further information please phone:
Loans Officer: (03) 6233 3116
Appointments can be arranged with the Loans Officer at RBF's offices located at 39 Sandy Bay Road, Hobart.