^^^
... interesting. I suppose if a couple of the lenders have raised their fixed interest rates - then they are punting that variable rates will soon go north a bit.. Is that about right?
I just refinanced a large commercial loan P&I - (from BOQ - where I had been a loyal customer since 1989, but where the darlings saw fit to have me on 4.9% grrr); ..to Suncorp, at a rate of 4.7% & I.O...
Would you say 4.7% (Commercial finance I.O. ) - is about on the money?
Your advice welcome.
Hey Base camp. Yes suncorp are starting to play with sharp rates in the commercial space so by all means i wouldn't see this as a bad rate.
It just depends, some banks will lend for business purposes at residential rates if 50% + of the security is residentially secured. So for example the rate would be sub 4% however obviously it needs the resi part to secure it. we are doing a lot of this with law firms, accountants etc where they have business lending (some paying 7+% due to being loyal customers of a bank
) and we are getting them down sub 4% so you can understand the savings. We just did this for a hairdresser client who owns 3 pretty exclusive shops around brissy and saved them about $60k annually in interest.
ING currently have commercial rates around the 4.2-4.3% as well for the right client, they are quite conservative and like the straight froward deals which obviously they all do.
Given you have just refinanced already its probably not financially viable to do it again plus the headache for you, however when you want to shop around let us know happy to offer advice if thats what you would like to do.
Am in the middle of working on a $6M+ commercial deal for a client in Sydney who owns multiple hardware stores. they have been with westpac in their family for 60+ years and now basically because valuations have come up short westpac are playing hard ball with them. Based on what banks have offered me so far they will save about $180,000 annually in interest, they cannot believe it. not to mention discounts on merchant services fees and bank waiving valuation costs. I suppose the beauty of using a good broker is instead of you playing the bank yourself we do it. at the end of the day playing a bank direct most of the time they know they have you as you are already talking to them.
Camping is much cheaper....
