flagFounded: Founded in 1880
businessOwned by: ASX listed, with NAB and Macquarie Bank as major shareholders
monetization_onFunded by: Retail deposits and wholesale capital markets
account_balanceLender type: Customer-Owned Bank
IMB is a medium-sized, customer-owned bank which focuses on the NSW South Coast, Illawarra and Sydney regions. Their commercial property loan offering is unique and is available from mortgage brokers across Australia.
As a customer-owned bank, they offer a superior level of customer service and competitive rates compared to the major banks.
How does IMB Commercial compare?
- Customer service (96% customer satisfaction rating)
- Financing small commercial property investment
- Refinancing commercial property loans
- Commercial loan terms up to 25 years
- Borrow up to 75% LVR, which is higher than most commercial lenders
- No annual reviews with most loans
- Unrestricted additional repayments
- Free internet and mobile banking redraws
- 100% offset account
- Strict credit assessment
- Limited range of commercial and business products
- Loans must be secured by residential, rural or commercial property
- Property development loans capped at $2 million
- They don’t do low doc commercial property loans
- They’re unlikely to accept a bad credit history
- Most mortgage brokers aren’t accredited with IMB Commercial
What does IMB Commercial do really well?
IMB Commercial is ideal for people who are buying a commercial property and want to borrow under $1 million. You’ll get a good interest rate, a long loan term, no annual reviews and a simple application process.
For larger loans you’re more likely to get a better deal from a major bank or 2nd tier lender. We would tend to put out a proposal and get offers from a variety of lenders which you could then choose from.
Why do so many people fix their commercial loans?
As with most commercial property lenders, IMB tends to offer better 2 or 3 year fixed rates than they offer with variable rates. Even when rates are predicted to rise their fixed rates still tend to be quite competitive.
By fixing for 2 years you can get a good deal but you have a much lower risk of break fees from having to exit the loan early.
IMB Commercial client story
To buy second home which is a mixed use townhouse.
Mixed-use property, commercial property.
Landing himself a new job, Don and his wife decided to sell their home in the suburbs to be closer to his work in the city.
Don and his wife were able to make a profit of around $180,000 after paying out the existing mortgage on the house.
Although settlement on his old property was still a couple of weeks away, Don was eager to start property searching and he and his wife quickly fell in love with a townhouse suite located in a shopping centre development.
The couple had no children and the townhouse was in walking distance of restaurants, stores and entertainment so they quickly made an offer to the vendors who quickly accepted.
Don had already been pre-approved up to $500,000 but, unfortunately, the lender wouldn’t accept the property because it was mixed-use commercial/residential. Don needed to find a lender and fast.
Don quickly spoke to one of our specialist mortgage brokers about his situation and the broker was able to find a lender that could help.
In some cases, it’s actually possible to get a residential home loan at residential interest rates for a mixed use property.
In Don’s case, the property was double storey, with the residence upstairs and a store operating on the ground level.
As the broker explained, to make the deal work, they would have to go with a commercial loan, which comes with slightly higher interest rates. Don and his wife really wanted the property and were happy to pay the extra cost.
The purchase price for the townhouse was $520,000 and, luckily for Don, the valuation came in at the same price!
With Don’s deposit of $180,000, the couple only needed to borrow at 71% of the property value (LVR). This was great because the lender limited borrowing for mixed-use properties at 75% LVR.
The mortgage broker was able to move fast with the application and get Don’s loan approved soon after his old home settled.
Compare IMB Commercial to other business lenders
Will your bank tell you if there is a better offer available? Our Commercial Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.