If you're buying a property at auction, get finance pre-approved first. Auction sales are unconditional, so the winning bidder usually pays a 10% deposit on the day and must settle whether or not the loan comes through. Without finance you risk losing the deposit and being sued by the seller.

In this video, McKern mortgage broker Mark Jones tells the story of a long-established business that found a commercial property going to auction in four days. Commercial pre-approvals can take three to four weeks through a branch, but by working with his contacts at the client's existing bank he had them approved in two days, so they bid with confidence. He also explains why commercial lending is stricter than residential (lower loan-to-value ratios and more trading history required) and how McKern Finance and McKern's accountants work together on structuring before you buy.

In this video

0:00 A client with four days until auction

2:09 What happens if you buy at auction without finance?

3:04 Why commercial lending is stricter

General information only, not personal advice.