Commercial Property trending Interest rates

We have just seen the Reserve Bank of Australia (RBA) cut rates for August. For the Major banks, we will soon see rates for new commercial property loans in the low 6s to 6.00% levels, and into the high 5s for fully secured loans. Low Doc commercial property lending will still be in the 7s for most deals. Some banks are showing higher appetite for commercial owner-occupied deals with lower rates and attractive terms.

SMSF (Self-Managed Super Fund) rates from specialist lenders are also into the low 6s for residential property at up to 80% Loan to Value Ratio (LVR) and low 7s for commercial property up to 75% LVR. SMSF Application fees depend on property grade, with higher graded properties at around 1.00% of total loan value. In general, a wide range of securities are accepted from 60-80% LVR, from residential and a broad array of commercial property types. Your SMSF specialist broker can guide you on sourcing the most appropriate loan.

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