Interest Rate - LVR

[fabi_90]

Hi all,

Could you please let me know interest rate for commercial properties?

I know that interest rate is higher than residential, but in order to assess a potential properties, I need to have a number to start with.

Could you please let me know?

In addition, I also know that LVR is 70% and I am fine with this. But I also was told that in some case 75% is feasible as well. It is more about the lender, the property or both? Do you have examples?

Thanks in advance,

Fabi

 

[Rolf Latham]

as a general range from mid 5.s at 65 % to high 5s at 70

Beyond 70 the rates go up a far bit

have a look at

http://brokers.adelaidebank.com.au/commercial_ss.html


for some general guidance, note rates here are little higher because these arent reviewed very year.


$ amount, lvr, borrower, property and tennant profile all form part of the pricing model for the mainstream lenders risk margins



ta
rolf

 

[Brady]

I believe CBA have an under counter offer going at the moment for commercial borrowing >$500k 2YR Fixed @ 4.99%

 

[Shahin_Afarin]

When it comes to commercial - also look at the fees. E.g. NAB will whack you with a $50 a/c fee each month.

Rates are going to be specific to what you are doing and also the LVR - the lower the LVR the better the rate.

If you are looking for finance for a standard comm property like a shop then ING and Suncorp are very competitive in this space. If the LVR is 70% then the rates would be 5.93% for ING (note I'm using them a lot right now due to the overall offering).

 

[Aaron_C]

For $1m or over bank bills would give you the best rate (low-mid 5s) but they come with annual reviews. In between is the ABL or ING offerings which are around 6% but no reviews.