Interest rates for Development Loan

I am currently sourcing finance for a investment development loan.
Will require $1.7m for a $2.4M buy/construct x 4 unit deal, allowing 18months project duration.
We have provisional approval from one of the banks but I'm not sure what is a reasonable interest rate at the moment for a development loan. What range should should I be expecting to achieve for interest on a development loan at the moment.

Roger Grogan

It really depends on a number of factors the rate as I assume this is commercial? But I have been placing these anywahere from 7.8% and above on commercial deals.

Spiro Kolokithas - What If We Finance Tel: 03 8804 1354
www.melbournemortgage.com.au
see the possibilities...

could be as high as 12 to 14% too.

Terryw
Finance Broker
Solicitor

Hey Roger,
I'm doing the same but only at the drafting stages for DA. Will need advise as to where to start looking for a development loan. Which bank did you approach and was it very difficult?

Could also be as low as 7% for this type of deal.

Regards,
YI

"Knowledge is Power"

Thanks for the feedback guys, sounds like I should be pushing for around 8% as a starter, guess it will be interesting see what they put on the table.
Currently talking with NAB and have had an encouraging response as far as being prepared to do business but minimal details.
We are still trying to secure the block but have a meet with NAB planned for later this week to talk details anyway.

Thanks again
Roger

Roger Grogan