Price a scenario with your brokerage in it
Enter your fee as a percentage or a dollar amount. It is added to the loan, so the client receives what they asked for and the facility is larger by your fee — and you can see the advance, the facility and the total repayable before you put anything to them.
- Advanced to the client
- $250,070
- Your brokerage, on the facility
- $6,174
- Establishment fee
- $12,348
- Legal & disbursements
- $3,990
- Exit fee
- $0
- Interest, capitalised for 6 months
- $36,118
- The same interest, per month
- $6,020
- Loan facility
- $308,700
- Total cost of the money
- $58,630
- Repayable at the end of the period
- $308,700
- Cost per $100,000 advanced
- $23,445
- Equivalent annualised cost
- 46.9% p.a.
Remember: that is 6 months of interest, capitalised into the facility at settlement. Your client makes no payments at all during that time.
Indicative only, and not an offer of credit. Interest is capitalised at settlement for the period shown, on the facility; interest beyond that period is charged monthly on the balance. The equivalent annualised cost is shown so products quoted on different bases can be compared; it is not a comparison rate under the NCCP Act, which does not apply to business-purpose lending.
“When you look at these numbers, look also at the cost of inaction, or of the opportunity missed. It often outweighs the cost of getting the funds quickly.”
How the brokerage sits in the loan
Every cost of the transaction comes out of the loan at settlement, so three numbers matter and they are not the same number. The advance is what reaches the client. The facility is the loan we write: the advance, plus your brokerage, the establishment fee, the legals and the interest capitalised for the period you choose. The total cost of the money is the difference between the two.
Your brokerage is worked out on the facility, not on the amount the client asked for, which is how the credit team prices a real file — so the figure in the panel is the figure you are paid. The loan is grossed up around every deduction and rounded up to the next hundred dollars, and the client still receives what they came for.
The calculator shows all three numbers, in that order, because the difference between them is exactly what a client asks about when they read the loan documents. Being ready for that question is worth more than a tidier-looking quote.
What to have in front of you
- The security and what is already owed against it. We lend to 80% of value on residential and 70% on commercial, counting existing debt. Vacant land is assessed case by case at a lower ceiling.
- The purpose. It has to be a genuine business or commercial investment purpose.
- The exit. A contract of sale, a refinance in progress or a trade debtor with a date beats an intention, and it is usually what decides how fast the file moves.
- How long they really need it. Our term is open — no minimum, no maximum, no extension fee and no penalty for repaying early — so the term in the calculator is for comparison, not a commitment you have to make on their behalf.
Every figure in the calculator is one you type in, including the rate. We do not publish a rate because pricing is per file. Send the scenario and you will get a real number from a Lending Manager, usually the same day — how that works, or 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.
Reviewed by Paul Stone, Joint Chief Executive