Non-major lender ING
Direct has dropped the interest rate on commercial loans in response to a growing investor demand for commercial property.
New commercial loans of $2 million or more will now have discounted variable rate of 4.50%.
John Kolyvas, ING’s national partnership manager, commercial – who was appointed to this newly created role to manage the increase in commercial investment demand – says the popularity of commercial investment opportunities is a trend which will continue.
“As investment in residential property loses a little of its lustre, commercial property is looking increasingly appealing for its relatively stable growth and solid returns.
“Commercial lending has been growing steadily in the past few years and in the current environment this is expected to continue. This new tier and variable rate is in response to an increasing demand for commercial loans above $2million.”
According to ING, the new tier will apply to eligible applications unconditionally approved from 6 October 2015.
In September, ING announced it will be increasing rates on existing investment property loans by 0.37%. This announcement came after the non-major increased the variable rate on new investment loans across the board in June, regardless of LVRs.