Interest rates vary depending on a number of factors. The main variables are:
- Loan amount ( higher loan = lower interest rate)
- Duration (shorter period = lower percentage)
- The loan to value ratio ( LTV ) (low LTV = lower interest)
- the circumstances and industry in which Your company operates
- the financial health of your company, and to what extent the repayment obligation can be met
The interest on a commercial property for personal use varies from 2.7% to a maximum of 7%. As an SME you can expect rates from 3.5% to 6.5%.
A commercial property that is not entirely intended for own use, but is partly rented out, entails a marginally higher risk. This is reflected in a small increase in the corporate mortgage interest rate on investment real estate.
Interest and repayment of a business mortgage
Other factors such as a fixed-interest period (from 1 year) can already make the costs of a business mortgage higher or lower. Read carefully before you do Your application, and then go to the bank or alternative lenders to get a better indication of the interest and the costs you will have to pay when taking out the business mortgage.
On our website you will find information and advice, and you can also easily compare. You can of course always contact us without obligation with your questions about a business mortgage or other business mortgages.
The maximum period or term of a business mortgage is usually 20 years, and in any case at least 1 year. The repayment of the business mortgage takes place on a linear or annuity basis and takes place per month. Do you want to repay more or less? It depends on the bank whether you pay extra costs for this. Are you applying for a business mortgage from an alternative financier? Then extra or early repayment is almost possible without extra costs.
It is important to take into account an application time of 2-4 weeks.