Commercial Loan Terms (Interest Rates / Fixed Rates / LVR)

[hobo-jo]

Had a bit of a search online and here, but there doesn't seem to be many details publicly available for commercial loans.

For a purchase in the $400-600k range. Metro Area. Office.

What's the maximum LVR that can be expected (earlier threads suggest aim for 80%, but expect 70-75%?)?
Does it make a difference that I could comfortably service the loan (e.g. $300-450k) whether there is a tenant or not?
What interest rate can be expected for a commercial loan at 70/75/80%?
Are fixed terms available, e.g. a 5 year or 10 year fix (and what rates can I expect)?

 

[Rolf Latham]

Had a bit of a search online and here, but there doesn't seem to be many details publicly available for commercial loans.

For a purchase in the $400-600k range. Metro Area. Office.

What's the maximum LVR that can be expected (earlier threads suggest aim for 80%, but expect 70-75%?)?
Does it make a difference that I could comfortably service the loan (e.g. $300-450k) whether there is a tenant or not?
What interest rate can be expected for a commercial loan at 70/75/80%?
Are fixed terms available, e.g. a 5 year or 10 year fix (and what rates can I expect)?

The higher the LVR the higher the rate will be, rate for risk is quite common in commercial.

Adelaide Bank, ING and a smattering of others have term loans that arent not reviewable annually.

Fixed terms of 5 are common, dunno bout 10

variable rates around the 70 % LVRish will be 5.x, with ING having a 5 year fixed of 5.6x

ta
rolf


ta
rolf

 

[hobo-jo]

Thanks Rolf, that helps.

 

[Corey Batt]

Thanks Rolf, that helps.

The bear is looking at commercial?

Surely not in Adelaide too?

 

[hobo-jo]

The bear is looking at commercial?
Surely not in Adelaide too?

Realist, not bear

And as I've said before, a good property deal can trump the direction of the market.

Seen a couple of interesting commercial properties pop up recently in Adelaide. Much more tempting than residential yields.