What is a standard interest rate on a commercial property loan?

Commercial Variable Rate Loan (Indicative Rates)

• Less than $1,000,000 - 6.99% p.a.
• Greater than $1,000,000 ≤ $5,000,000 - 6.54% p.a.

Commercial Fixed Rate Loan (Indicative Rates)

Total NEW Business Borrowings $500,000 < $1,000,000

 Indicative Fixed Interest Rate

1 year Fixed Rate - 7.32% p.a.

2 year Fixed Rate - 7.37% p.a.

3 year Fixed Rate - 7.02% p.a.

4 year Fixed Rate - 7.42% p.a.

5 year Fixed Rate - 7.46% p.a.

Low Doc Commercial Rates:

If you don't have full business financials, then you can go a low doc options with a simple accountants letter or 2 BAS. The rate you would expect to pay is roughly:

50% LVR: 8.59%

80% LVR: 9.75%

Commercial SMSF Rates:

50% LVR: 7.94%

80% LVR: 8.93%

These rates were valid as of 12/11/24.

• If you're looking for lower initial rates and are comfortable with potential future rate fluctuations, a Variable Rate Loan might be more advantageous, especially for larger borrowings.
• If you prefer predictability and stability in repayments and can tolerate slightly higher rates, a Fixed Rate Loan would be suitable, particularly for those who want to lock in a rate for a longer period.

When deciding between these options, it’s important to consider your business’s financial situation, risk tolerance, and whether you expect interest rates to rise or fall.

Loan Market Matthew Stack - 0423 237 242

matthew.stack@loanmarket.com.au

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