FAQ

Funding Door specialises in asset-backed commercial lending, including First Mortgage Loans, Second Mortgage Loans, Caveat Loans, Bridging Finance, Equity Release, Working Capital, Debt Consolidation, Residual Stock Loans, Development Exit Loans and Construction Financing. All loans must be for business or investment purposes only.

Funding Door's products are designed for borrowers seeking finance for business purposes. The primary eligibility requirements focus on the legal structure and purpose of the loan.

• Borrower Entity: The borrower must be an Australian incorporated company.

• Loan Purpose: The loan must be for a purpose that is wholly or predominantly for the purposes of a business carried on by the borrower.

• Trusts: Loans may be considered for a trust, provided the borrowing is in the name of the corporate trustee as trustee of the trust.

• Self-Managed Super Funds (SMSF): Loans are available to SMSFs where the applicant is the SMSF trustee (which must be a company). These transactions must be at "Arm's Length" (not related party transactions). Cash out and residential owner occupation are not acceptable loan purposes for SMSF loans.

• Non-Resident/Temporary Resident Directors: Loans may be considered for Australian-incorporated companies even if one of the directors is a non-resident or temporary resident, provided the company also has an Australian-resident director.

We provide lending across Australia, securing loans against residential, commercial, and industrial properties.

Our preferred areas of lending, which receive the highest LVRs, are Major Cities (e.g., Sydney, Melbourne, Brisbane) and their metro surroundings.

Note on Other Locations:

Properties in Regional Cities, Destinational, or Non-Metro areas can be considered, but these loans are subject to:

• Lower maximum LVRs.

• Prior Credit Committee approval.

We focus on locations with deep and liquid property markets and a population of greater than 100,000 people.

✅ Acceptable Securities

• Residential Security: Includes Torrens titled houses, individual strata title home units, townhouses, villa units, duplexes, and blocks of residential flats.

• Commercial Security: Includes warehouses, warehouse conversions, factories, office premises, retail premises, and light industrial property, shopping centres and service stations (Case by Case)

• Land Security: Vacant land is an acceptable form of security.

• Crown Leasehold Property: Acceptable, provided the remaining term of the lease exceeds the loan term by at least 10 years.

• Specialised Securities: Require prior Credit Committee approval.

❌ Unacceptable Securities

The following are generally considered ineligible security types:

• Location & Environmental Risk:

  • Flood prone areas / flood affected properties (less than 1:100 year flood is unacceptable).

  • Properties adversely affected by mine subsidence or land slip.

  • Contaminated or potentially contaminated sites.

  • Areas affected by high-tension powerlines or motorways.

  • Security located on an island without a sealed road connected to the mainland.

• Property Type & Size:

  • Residential properties less than 40sqm (exclusive of balconies and parking).

  • Relocatable / Kit homes.

  • Exhibitions homes.

  • Rural zoned properties having residential units above commercial shops.

• Specialized Commercial/Niche:

  • Supermarkets, Resort complexes, Abattoirs.

  • Nursing or retirement homes, Motels, Hospitality, NDIS.

  • Incomplete developments.

  • Hospitals, places of worship, boarding houses, childcare centers, casinos, pubs, or clubs.

• Title & Legal Issues:

  • Company title.

  • Leasehold properties (general leasehold, excluding Crown leasehold).

  • Properties with restrictive zoning or usage (i.e., National Heritage listing).

  • Life tenant occupancy.

🔑 Key Requirements for All Security

• Mortgage Type: Must be secured by a registered 1st Mortgage or 2nd Mortgage/Second priority via Caveat

• Valuation: Must be carried out by an approved panel valuer and be valued on an 'as is' basis.

• Condition: All properties must be in a satisfactory state of repair and readily saleable.

Our rates start from 8.25% p.a. for First Mortgages and from 11.95% p.a. for Second Mortgages. Final pricing depends on the asset type, LVR, borrower profile, and loan purpose.

We typically lend up to 75% LVR on standard residential properties, with lower LVRs on commercial, industrial, specialised, or rural properties. Higher or blended LVR solutions may be considered on a case-by-case basis.

General Requirement

Where interest on the loan is not prepaid for the full term, the borrower's ability to pay interest must be verified. This is done to ensure the borrower has the prospect of making interest payments and does not enter a loan that may cause substantial hardship.

Primary Verification Method

The preferred method of verification is an Accountant's Certificate (referencing Appendix 3 in the guidelines). This certificate must confirm the applicant's ability to service the interest on the loan.

• The certificate and the accountant must be verified by:

  • A TPB (Tax Practitioner Board) registry search confirming the validity of the accountant's license.

  • A verification call to the Accountant confirming the information in the letter is true and correct.

Alternative Verification Methods

If an Accountant's Certificate is not available, evidence must be sought from the borrower explaining how interest will be serviced. Acceptable forms of verification can include:

• Company Management Accounts.

• Copies of Income Tax Returns (Individual / company).

• Evidence of BAS Payments.

• Bank Statements (individual or company).

• Pay slips from an employer.

• Letter from the employer confirming employment terms or a copy of the employment contract.

• For contractors: contracting agreement, invoices showing consistent income, and matching bank statements.

Unacceptable Income

The following forms of income are considered unacceptable for servicing the loan:

• Unemployment benefits.

• Allowances for clothing and travel.

• Carer's Allowance.

• Pension / Benefit Income.

• Child Support Payments.

Pre-Paid Interest as a Mitigant

In scenarios where the servicing risk is deemed high, or the cash out component is significant, the lender may require interest to be pre-paid for a portion or the full term of the loan. A pre-paid interest requirement may be waived by the Credit Committee if an Accountant's Certificate verifying the borrower's capacity to service the interest is provided.

Yes. We can work with borrowers who have previous credit impairments, defaults, ATO debt, or arrears, provided the scenario is supported by a strong asset position and exit strategy.

Brokerage fees are agreed directly between the borrower and their broker.

Funding Door applies one transparent establishment fee, covering all work involved in assessing, approving, structuring and managing your loan. The fee varies depending on the complexity of the transaction but is always aligned with industry norms.

Our standard minimum loan size is $500,000. Requests below this threshold may be approved at our discretion on a case-by-case basis.

Yes. We work closely with brokers, accountants, lawyers, real estate agents, and developers. We offer strong support and fast turnaround times for our referral partners.