Deal Parameters
Purchase Price
20 Marriott St asking
Gross Annual Rent
12 units × $720/wk × 52 weeks
Annual Operating Expenses
Rates, insurance, maint., L/Tax
Vacancy Allowance (%)
% of gross rent
Valuation Fee (Private)
At cost, typically $3k–$5k
CBA Rate (%)
Indicative only
Private Lender Rate
8.79%
8.29% (negotiated)
Toggle to apply 0.50% discount
Non-Bank Private
Private Lender
Interest Only · 30 Year Term · No ERF
Available LVR70% (loan ≤ $4m)
Loan Amount—
Interest Rate8.79% IO
IO Period5 Years
Loan Term30 Years
Monthly Repayment—
Annual Interest—
Ongoing FeesNone
Early Repayment FeeNone
Setup Costs
—
App fee (1.50% + GST)—
Commercial valuation—
Settlement fee$450
Total setup—
Major Bank
Commonwealth Bank
Subject to serviceability · Net rent > $300k required
Available LVR70%
Loan Amount—
Interest Rate7.00% IO
Monthly Repayment—
Annual Interest—
Setup Costs
~$3,000
Application fee~$3,000
ValuationIncluded
Total setup~$3,000
Serviceability Check
—
Gross rent (adj. vacancy)—
Less: operating expenses—
Net rental income—
CBA requires: > $300,000
Head-to-Head Comparison
| Metric | Private Lender | CBA |
|---|---|---|
| Loan Amount (70% LVR) | — | — |
| Interest Rate | — | — |
| Monthly Repayment | — | — |
| Annual Interest Cost | — | — |
| Year 1 Setup Costs | — | ~$3,000 |
| Year 1 Total Cost | — | — |
| Annual Saving (vs Private) | — | — |
| Setup Cost Payback Period | — | |
| 5-Year Interest Total | — | — |
| Cash Flow (after debt service) | — | — |
| CBA Serviceability | N/A | — |
Key Considerations
Private Lender
Higher setup cost (1.5% + GST app fee vs ~$3k CBA)
Rate 0.50–1.79% above CBA — negotiate hard for 8.29%
No ERF = full flexibility to refinance to CBA once servicing improves
No ongoing fees, no annual review risk
Faster credit decision — less serviceability scrutiny
Max $4m loan at 70% LVR — verify with PP input above
CBA
Significantly lower rate — material cash flow benefit
Net rent must exceed $300k — check serviceability pass above
Lower setup costs — $3k vs private lender app fee
Longer approval timeline and more documentation
Use as refinance target once reno income uplift is proven
Standard 70% LVR — same as private on this deal