Commercial Property Loans
This product comes in two flavors; investor and owner-occupied properties. Both are being scrutinized quite heavily so prepare yourself for a full documentation loan. Meaning, three years complete tax returns must be submitted.
For investor properties the maximum loan to value (LTV) that a bank will finance is somewhere between 65% to 75% LTV.
Some banks may only go 50% for retail properties.
Interest rates will vary depending on the strength of the borrower. The property must have at least a 1.25 to 1.35 Debt To Service Coverage Ratio as well.
For owner-occupied properties, we can go a bit higher on the LTV, up to 90% financing in some cases because we add in an SBA component. It's not as scary as it seems. But be prepared to do some paperwork.
Contact us today to regarding your industrial, office or retail property.
Commercial Property Rate Examples
ate quotes below are an estimate using recent market pricing parameters and generic risk and collateral assumptions and will vary with from borrower to borrower
3-year fixed rate: 4.50%
5-year fixed rate: 4.75%
7-year fixed rate: 5.85%
Unsecured line of credit – variable rate: 3.73%