Lease Doc Commercial Calculator
Instant Feasibility Assessment
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Lender Scenarios
| Lender | Max LVR % | Rate % | Max ICR | LVR Max Loan | Annual Interest | Benchmark Rent | Status | Final Loan / Final LVR |
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* LM = LVR Max (Loan Limited by Max LVR).
* CR = Constrained by Rent (Loan limited by Income/ICR).
* "Final Loan" is the lesser of the two caps. Values are indicative estimates only.
* CR = Constrained by Rent (Loan limited by Income/ICR).
* "Final Loan" is the lesser of the two caps. Values are indicative estimates only.
Summary
Cheapest Rate
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Max Borrowing
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Borrowing Reduced By
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By choosing Cheapest Rate over Max Borrowing
LVR Constraint
Lenders cap the loan amount at a percentage of the property value (e.g., 65%). This is the base limit.
ICR (Interest Coverage Ratio)
Commercial lenders require the rent to cover the interest payments by a certain margin (e.g., 1.5x). If the rent is too low, the loan amount is reduced until this ratio is met.
Benchmark Rent
This is the theoretical rent required to service the maximum possible loan at the lender's target ICR.
Deficit/Surplus
If your actual rent is lower than the Benchmark Rent, you have a deficit, and your borrowing power will be reduced (Service Constrained).
