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  1. #1
    Join Date
    Mar 2007
    Posts
    118

    Default Commercial Interest Rates

    Hi

    How can one get details and compare mortgage rates charged for commercial loans?

    With home loan rates being low, what is the current range for commercial loans? How much higher should a commercial loan be above the floating home loan rate?

    Cheers.

  2. #2
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,305

    Default

    Dude, ring your bank?

    My bank is around 1 to 1.2% above residential rates i.e. say 6.5% for commercial, around 5.2% for residential.

    But that's one bank, dealing with a particular customer and property.

    It's a bit different for each situation, so you need a quote really.
    Squadly dinky do!

  3. #3
    Join Date
    Mar 2007
    Posts
    118

    Default

    Thanks, Davo. I can get the rates offered by my bank but what do you compare them with? How can you be certain these are the best rates offered?

    Cheers!

  4. #4
    Join Date
    Sep 2004
    Location
    Central Otago, ChCh, AKL
    Posts
    2,443

    Default

    How can you be certain these are the best rates offered?
    You Best to talk to your business banking team or a good mortgage broker.
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  5. #5
    Join Date
    Nov 2011
    Posts
    445

    Default

    i prefer using a mortgage broker.. they can do alot of the hard work for you

  6. #6

    Default

    I was asking the same question when I was looking to refinance a while ago. Current rates for my commercial loans are well below 5.0% but that reflects my particular situation. It is a question of how much your bank values your business and good lending from a bank's perspective can be hard to come by. Banks will compete to get good business but you need to put a complete proposal to them ie. tenancy schedules, current valuations, etc, etc. For me, I was unhappy with my bank and I had made the decision to refinance. When my bank realised I was 100% serious they offered a deal I could not turn down.

  7. #7
    Join Date
    Oct 2011
    Location
    1/18 Seaview Road, Paraparaumu Beach
    Posts
    267

    Default

    Hi King13, as some of the others have eluded to commercial rates can vary depending on the risk, loan size, loan to value ratio etc. The banks/lenders will vary rarely give a firm commercial quote without assessing the deal first. It's best to find a broker to do the shopping around for you.
    Craig PopeCraig Pope Mortgages & Insurance
    www.craigpope.co.nz

  8. #8
    Join Date
    Jun 2004
    Posts
    10,367

    Default

    don't brokers charge for commercial loans?

  9. #9
    Join Date
    Oct 2011
    Location
    1/18 Seaview Road, Paraparaumu Beach
    Posts
    267

    Default

    Yes, sometimes they do depending on the bank. The bank also charges a fee which may be reduced if the broker also has a fee portion. Again its a case by case.
    Craig PopeCraig Pope Mortgages & Insurance
    www.craigpope.co.nz

  10. #10
    Join Date
    Mar 2007
    Posts
    118

    Default

    Thanks everyone for the responses.

    I do have a good relationship and the bank has provided finance. But as the accountant says 'the bank is not loyal to any client so be informed to keep the bank competitive and not take you for granted'.

    Willkiwi, 5% interest on commercial loans is surprisingly good! Don't see it on home loans! Agree it would be your particular circumstances but I am sure all here will appreciate some details.

    Cheers.


 

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