Another thing we’ve noticed over the last 1-2 years is that just because a deal fits the parameters of what they’d usually lend against, there’s always external variables that affect funding.
You might have a project, and you’ve done a project next door which your bank has funded. You then go to the bank about the second project and they say they’ve hit the lending cap for that suburb/state or hit their lending cap for that type of property. It’s something that’s critical for you to know.
In that instance, it doesn’t mean there’s anything wrong with your project. It just means you need to find a bank with an appetite for that particular project at that time. It’s important to know that sometimes, for no particular reason, a bank won’t fund your project. That’s up to us to find out and deliver that information to you.
Certainly nothing to be worried about because it doesn’t mean they won’t be back lending to you in 12-18 months’ time. It’s just that at that particular time there are things at play within their bank that aren’t allowing them to fund that project. It’s a matter of saying thanks for the business, let’s go and talk to another bank.
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