I was told prime plus 2-3 when I was shopping for a commercial mortgage a month or so back. Undoubtedly lots of variables - the quote was "quick and dirty" - no appraisal, no credit app, etc.
Commercial Real Estate Rates?
My Mom has some money lent out to a business as a mortgage. It's up for renewal, and it's the first renewal since my step-father passed away. He used to deal with it. It's easy to give her an idea of what a residential rate would be, but does anyone have any idea of what the commercial rate would be?
I know there are ten thousand factors, but on a good risk, is it 1% above residental, 2%? etc.
I know there are ten thousand factors, but on a good risk, is it 1% above residental, 2%? etc.
1 - 5 of 5 Posts
My business loan was prime + .25%. But it is those factors that can affect the rate.
If you really have no idea, and not knowing the business details that you are involved in yourself. I would recommend either contacting another company under the same pretenses for a quote....then you will at least know what the going rate is. Or...you may want to contact a lawyer that deals in commercial RE/financing as they should probably review your finance/lease agreement.
If you really have no idea, and not knowing the business details that you are involved in yourself. I would recommend either contacting another company under the same pretenses for a quote....then you will at least know what the going rate is. Or...you may want to contact a lawyer that deals in commercial RE/financing as they should probably review your finance/lease agreement.
Why not take the rate you are currently charging them and go back and see what the prime rate was when it started/when they last renewed... if it was 2 over prime then, just use 2 over prime now?
Sound like good advice.Why not take the rate you are currently charging them and go back and see what the prime rate was when it started/when they last renewed... if it was 2 over prime then, just use 2 over prime now?
1 - 5 of 5 Posts
- This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Canadian Money Forum
A forum community dedicated to Canadian personal finance enthusiasts. Come join the discussion about investing, stock portfolios, equities, frugality, real estate, market trading, taxation, retirement, and more!
Full Forum Listing
Explore Our Forums
