Commercial Loan Package

Commercial Loan Package

Product Features
About the Product	The BOC Commercial Loan is specially designed to provide variable interest rate to loans with the following features: a) loan amount under $1 million; and b) secured by commercial properties
Eligibility	Available to individual borrowers (natural persons).
Loan Purpose	The purchase or refinance of commercial property for owner-occupation, investment purpose or any other commercial purposes approved by the Bank.
Loan Term	- P & I installment loan for up to 15 years; - Interest Only (IO) term loan for up to 5 years.
Interest Rate	Variable Rate: 7.68%; comparison rate 7.77%* NB: The Variable Rate is subject to change and the final rate charged will be the rate on the day of settlement
Minimum Loan Amount	A$ 100,000.00
Maximum Loan Amount	A$ 1,000,000.00 * The Bank may approve loans with loan amount over $1 million at its full discretion.
Maximum Loan to Value Ratio (LVR)	70%
Repayment Type	P & I: Repayments may be fully amortizing over the loan term IO: Interest only for up to 5 years, with lump sum repayment at the end of the 5 years or converting to P & I for the remaining term of up to10 years.
Early Repayment Fee	Early repayment is allowed
Redraw	Redraw is allowed, but the amount of redraw is limited to the prepaid amount. The term of Redraw must not exceed the Final Maturity date.
Security	Commercial Properties (such as retail buildings, offices and industrial buildings) in major metropolitan areas
Valuations	- Mandatory - The Bank is to instruct accredited panel valuers
Default Interest	The default rate equals to the interest rate applicable to the relevant account at the time of default plus 3.00% per annum or at any other rate as advised by the bank from time to time.
Documentation	Documentation is to be prepared by the Bank’s legal adviser.
Discharge	Upon termination of the loan, the borrower must fully repaid the following amounts: - Outstanding balance of the loan; - Unpaid interest estimated to payout date; and - Unpaid fees and charges

Fees & Charges
Application Fee	0.10% of the Loan Amount with minimum charge at     A$ 500.00
Loan Service Fee	A$ 8.00 per month
Settlement Fee	A$150.00
Valuation Fee	By quotation, payable by the client prior to the issuance of the Letter of Offer
Early Repayment Fee	Nil
Redraw Fee	A$ 30.00 per redraw
Legal Fee	By Quotation, payable if client signs the Letter of Offer and requests the Bank’s Solicitor to prepare Legal Documentation.
Other Fees (if applicable)
Renegotiation Fee	A$ 300.00
Split Account	A$ 300.00 per account
Guarantor Fee	A$ 300.00
Credit Limit Increase Fee	A$ 300.00
Loan Extension Fee	A$ 300.00

* The current comparison rate is calculated based on the loan amount of $300,000 with loan term of 15 years. Comparison rates are calculated in accordance with a standard formula, which takes into account of the loan amount; the term of the loan; the repayment frequency; the interest rate; and the fees and charges arising from the loan. Costs such as redraw fee, valuation fee, legal fee and other unscheduled fee are not included in the calculation of the comparison rate but may influence the cost of the loan.