What is the current commercial interest rate?
What is the lowest rate you have been offered in the past month for commercial property?
Hard one to answer without a lot more hard data.
What type of Com security / full doc or lodoc / established business or not / variable or fixed rate / resi security Com purpose the list of questions goes on and on.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Depends on how much, where, what type of property, the lease and your personal financial position. Commercial loans are not like residential loans where you can just look up a carded rate. There are some commercial loans that operate like this but most, particulalry the larger ones are priced for risk. Sorry to be so unhelpful, but it is not a question you will get a straight answer to the range would probably be somewhere between 8% and 12%, but could be lower or higher.
Regards
AlistairFair enough. It is for a top quality low priced freehold property in a great location, banks love it, will jump on it all day long
looking at 1 or 2 year fixed rates. lowest in the current markethi
As others have said……it depends on a lot of things but overall financial risk assessment of the borrower by lenders is the main thing that drives end rate.
As an example, doing one now for extremely wealthy professional. Loan is stand alone $1.26M at 70% LVR for Sydney CBD strata commercial office suite. Variable rate to the borrower is approx 6.6% pa being BBSY plus customer margin 1.75%
keiko wrote:Fair enough. It is for a top quality low priced freehold property in a great location, banks love it, will jump on it all day long
looking at 1 or 2 year fixed rates. lowest in the current marketA bit to general…in fact still can’t work out what sort of security it is….
Commercial is very different to resi; they look at the overall risk of the borrower, security, LVR and stability of tenants to determine a rate.
Bank west has some “low” commercial fix rates ( 2 years for 7.25% from memory ) ; but they do not service a large range of security + they only target low LVR loans and preferred not to be owners occupied. Also after the fix is over their rate jumps up quite a bit.
To be honest your best to contact a commercial broker ( plenty above that responded to your post) as they can work out and find the best overall deal… most of the time it’s not JUST about the delivery rate but also we look at set up cost, risk fee ( if any), break fee, on going + some commercial lenders only deal with whole sale funding + the broker market only.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Cool thanks, those two rates indicate what I was looking for, I now know my rate is good.
What rate are you paying and thru whom ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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