Why is an investment loan on a residential unit block viewed as a commercial loan although the income and expenses are viewed as individual as per the tax office?

Hi Craig,
It depends on the project size, most lenders will view up to 3 units as residential and 4 or more commercial. Your tax structure doesn't affect the loan type.
It may be worth discussing your project with a broker who can explain each lenders criteria
Best of luck
Scott

Craig good afternoon. The answer to your question may lie in the size of the development. If the complex of units consists of more than four, then most lenders will consider this as a Commercial proposal.
If you would like to give me a call, I would be happy to get a better understanding of your situation and discuss possible options.
Regards
Ken Olds
Customers First Mortgages & Insurance
1300 ASK KEN

Craig, with Commercial rates almost as low as residential investment rates, it doesn't make a huge difference.
Depending on the loan ratio (based on the property's value vs. the amount of the loan) you could be looking at rates under 5% in any case.
My office is only down the road at Baulkham Hills if you want my help.