Commercial Lending Rates

[Morrieaga]

Hi All,

I am wondering how others are getting on with negotiating commercial lending rates from the main banks at the moment.

I have a couple of small commercial properties (retail) with a combined LVR <50% and lease payments >2x interest payments, and whereas 4% rates are easy to come by with residential lending, it seems that the commercial lending rates are stuck in the low 5% range for short terms, and even higher for longer terms.

Are others experiencing the same thing, or this there another bank I should be talking to?

Thanks!

[Davo36]

Nope that's what I have been quoted recently too.

AND they use a 15 year term rather than 30 when calculating serviceability too.

[Morrieaga]

Thanks for the reply.

In my case they used a 15 year term for the calculations too but then offered to provide most of the lending Interest-only.

[Beano]

Floating 4.36pc LVR similar and interest cover higher than yours $16m loan ...PM every month and i will update you with the new rate . It was 4.33pc last month . Repaying $1m pa

[Davo36]

Yeah you're in a different league Beano.

Floating rates for most of use are well over 5pc.

[JBM]

Yeah you're in a different league Beano.

Floating rates for most of use are well over 5pc.

Yes, there is no first-timer commercial buyer deals with the banks ... any more commercial lending I do with Westpac I need 50% deposit and unless I have more equity 2% over res rates

I've talked with banks like SBS where they expect the loan tobe paid back in full on the fixed term of the lease i.e 10yr fixed term they want all loaned funds paid back in that time and wanted the monthly payment structure to suit.