Interest Rates on Commercial Property

What sort of net rents to interest cover do you have ?
Is the total loan under or over $10m (if over $10m is it over $20m)
What is the WALT

 

WALT Weighted Average Lease Term

Had to look that up.

 

Usually called WALE (Weighted average lease expiry)

 

Just a small

ICR of net-rent/interest is about 2.5x of a loan of $500k.

 

Ratios at current interest rates around

4.5x
3.8x

Sub $10m on both pieces

 

Not certain the rate on a $500k loan but the commercial loans on a three year terms for a medium size loan (about $20m) are about 2.55% on floating. The interest needs to be covered by net rent of 3 plus.

 

My rates are
- Suncorp 65% LVR 2.92% IO
- Bendigo 65% LVR 2.1% IO
- Macquarie 60% LVR 2.25% IO

Bendigo are most aggressive in terms of pricing & LVR . They also offer us an offset facility with no line fee (usually 1.5%)

Our LVR is circa 30%, ICR roughly 3x, with TD/ cash reserves with the same banks. I prefer to spread borrowing across minimum 3 banks once
You get to a 8 figure debt load

I have family members who are medical
Professionals who I am told can source even cheaper than me with much less borrowing

 

Great rates

 

Fantastic rates!!! What are the actual loan product names?
Cant find the rates you mentioned on Bendigo website.
Or are they only accessible through brokers?

Thanks!!!

 

Macquarie does commercial lending on a portfolio of 4+ resi IP. I believe loans are cross secured

Suncorp and bendigo are standard commercial loans obtained through a broker

 

Thanks it seems Bendigo doesnt have broker network yet operating in Vic having made some
inquiry to a branch. The indicative rates the guy offers are definitely no where near your 8 figure
one lol

 

Great rates as others have said. Are these properties held in a trust or another structure/type of entity?

 

we use a broker. I have never understood why people go direct: i highly recommend JAMES KELDER from Green finance group in Brisbane. They have the relationship with the banks who are hungry for volume and offer enticing rates

Macq is a mix of trusts and personal names (resi portfolio).
The commercial properties are all in trusts with standalone corporate trustees

in process of refi away from Suncorp - but I will say they are useful to have up your sleeve for “difficult” assets - vacant land preDA, vacant industrial...

I have never liked mezzanine / 2nd tier lenders - if I can’t raise cheap debt, either the deal is no good or I am overstretched...both red flags

 

New to commercial lending. But what kind of rates can you get on commercial secured against residential. I know it's like asking how long a piece of string is. But to give you an example;

500K unencumbered property
1500k commercial purchase @7% net return

Is the 75% lvr too high?

I can PM you if that's better

 

Wondering if Macquarie would consider a 65% LVR cash out across 4x resi properties? Anyone know a good commercial broker in VIC I could speak to?

 

Didnt know that one can get commercial funding for residential, unless you mean for a resi multi
units development??
I am keen to know the answer too.

 

Amazing rates, please share insights. Looking to refinance a property under 50% LVR.. so I am hoping it can be done for sub 2.5% rates!

 

Anyone familiar with commercial lease doc loan?what’s the interest rate?

 

I've heard that Westpac currently has a great promotion on at the moment something round 3%
or less (?) and no app fee no annual fee. Anyone has any details on this?