Interest Rates on Commercial Property

Which one for $1-$3 mil mark?

 

How are interest rate tracking for commercial properties (like non-specialized - Industrial warehouse , Retail and specialized - medical centre , child care) these days? I have seen rates mentioned from 2.59% to 3.5% with LVR from 50 to 80% in this post. Any recommendation for broker/bank for investment of $1-$3 mil who can do both specialized and non-specialized?

 

We've recently enquired with Westpac about refinancing a childcare center. They advised:

Indicative Interest Only Fixed Rates:
2 Years – 2.91%
3 Years – 3.23%
4 Years – 3.49%
5 Years – 3.71%

This is including the line fee for a loan of circa $1.9m at just over 50% LVR.

 

Thank you for sharing. Does any lender offers offset facility in corporate trustee ownership structure?

 

I have yet to see an offset facility for a commercial loan. But hope to hear if others have obtained this. I tried this with NAB, several times, but they call it an Overdraft Facility and charge a higher rate of 7%, even though the same property security is getting a 2.4% loan for the property. ?Go figure? Company structure with both entities, and directors guarantees etc.

 

Some lenders like Suncorp offer offset facilities however the single most important feature to consider with commercial lending rarely gets discussed and thats reviews.

The first question you need to ask is does the lender do annual or semi regular reviews - you don't want to pay for valuations every so often or even have to submit full financials/income documents.

Ideally you want a set and forget loan with no annual/semi regular reviews.

 

Will this be applicable to lease doc loan?

I am looking at a lease doc atm with rate 2.65%. Any advice what things I sould be watching out for?

 

Yes I agree. Great for the valuer and another thing to worry about.

 

I've been working on refinancing and just received the following letter of offer:

ANZ’s Business Mortgage Index rate, currently 6.35% p.a. minus a margin of 3.37% p.a. ANZ’s Business Mortgage Index rate varies from time to time and is published on anz.com.

+1800 setup fee
+187.50 quarterly fee


How do these fees compare too?

 

awaiting confirmation but comes with an offset too...

 

Can I please confirm are there any other lenders in the market other than ANZ offering commercial loans with a 20% deposit and 30 year term?

 

Never seen 20% deposit and 30 year term for commercial .

 

I have one (soon to be two) ANZ commercial PI loans which were secured on a 20% deposit and 30 year arrangement.

 

What are the rates and the terms ?

 

PI 2.65% variable and PI 2.65% fixed for two years for the other with setup fee and quarterly fees.

 

Two years looks pretty good to me .
Will they do a longer term than two years ?

 

Keep in mind @Beano this is usually for sub 1m purchases as I imagine the banks are keen to control the risk with higher LVRs. Maybe not your playground

 

That's correct as I assume that anything greater will be under a different LVR and terms.

I'm assuming that I am stuck with ANZ and their very slow process time for any further commercial purchases.

 

BOQ is doing them as well. Macquarie currently offering 25y term @70% from my recent enquires. 1.5m loan

 

what kind of spreads between IR and Yields does everyone deem acceptable? with rates down as low as high 2s and low 3s is anyone accepting a yield with 150bp spread? i am interested to know what your limits are.