A non-major bank is offering a new variable rate for commercial loans in response to growing investor demand for commercial property.
ING Direct has introduced a new variable rate of 4.50 per cent for commercial loans of $2 million or more.
John Kolyvas, national partnership manager, commercial, at ING Direct said that 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,” he said.
“This new tier and variable rate is in response to an increasing demand for commercial loans above $2 million.”
The new tier will apply to eligible applications unconditionally approved from 6 October 2015.
Mark Woolnough, ING Direct's head of third-party distribution, said the growing investor appetite for commercial property was a great opportunity for brokers looking to build a sustainable and diversified business.
“With investors increasingly turning to commercial property there will likely be a complementary surge in demand for professional support to help navigate the market and negotiate on commercial loans,” he said.
“There is huge scope for brokers to meet this demand – they have relationships with lenders, access to market insights and are knowledgeable about the nuances of commercial loans.”
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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