Anyone raised a bank mortgage on a commercial or industrial property lately? If so at what rate and terms? Were they more interested in the valution - or the purchase price. Did you manage to trim a bit off their published rate? What bank? Did you shop around? I'vve long since retired from such activity, but am curious about the current situation.
Mortgage rates for commercial property.
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16-09-2022, 08:56 AMfungus puddingMortgage rates for commercial property.
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16-09-2022, 10:46 AMJBmurcNo I just rolled over my Commercial property loan thats at Res rates (as I have the Res equity to cover Westpac one of the few banks to do this) but in recent talks with Business banker certainly isn't easy to get lending on commercial without jumping threw many hoops to please the bank ...Quote:
Originally Posted by fungus pudding
what I heard
I'd say they'll want 50% min deposit
P&I loan to pay-off lending within fixed term of lease (unless you have the equity)
67% NBS min earthquake report ..
As to rates depends on which lender ...if after filling out all their forms of details of your personal affairs they think your good enough to lend to ....then they will slap you with the rates I've heard of 2% over RES rates(Unless you have the equity they like RES-CASH etc) ..but that was earlier in the year.. -
16-09-2022, 12:12 PMfungus puddingI assume the property you mortgaged was the res. one. That's common. The bank generally don't care what you want to do with the money - they are usually only interested in the security you offer. e.g. It's common for borrowers to mortgage their house to buy a new car, or a world trip. I'd be amazed if they gave you res. rates against a mtge on your commercial property.Quote:
Originally Posted by JBmurc
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18-09-2022, 10:31 PMJBmurcYes westpac did ..many don't these days ... they used my own debt free homes equity as security and in turn give me RES rates ... I could understand it may have changed as I got the loan back in 2017 ...and have just continued to roll it over each re-finance so its not really brought up for review being P.IQuote:
Originally Posted by fungus pudding
..Certainly under labour Govt they put pressure on the banks with the likes of Interest only(I.O) lending ... my other loan is funding small percent of my trading companies capital base mostly shares in the ASX ... for over a decade I only had it as I.O recently I was forced to make it P.I ...I could pay it off at any stage just by selling a few shares but the A-hole socialist govt thinks its better if I pay off some principal every month .. I also get this company loan at RES rates
both loans interest of course are TAX write-offs unlike if my debt was personally held etc >>> -
19-09-2022, 08:54 AMfungus puddingQuote:
Originally Posted by JBmurc
Yes, your res. property was the security, and that will undoubtedly be the property they registered the mortgage against. Any bank will do that. Of course it's still tax deductable - that's determined by what the loan is used for - not what security is given.
The point is a bank will not give you a mtge on your commercial property at res. rates. -
19-09-2022, 10:40 AMJBmurcYes I wouldn't think so,,,I know the bank was talking about giving me 50% equity if I paid off my commercial property but of course this equity would be at higher rates one would think ...Quote:
Originally Posted by fungus pudding
with rates so much higher + commercial yields low for anything decent ..I don't see any attraction to NZ commercial property at present ... Vs say Peer to Peer loans 8%-9%+ or Companies with strong Dividends etc