Commercial Loan Rates

Ruth asks…

Why is my bank raising there loan rates and the Fed is dropping there’s?

About 6 months ago I went to my loacl bank about building a home. It would be on a lot next to my business and its zoned commercial so they said it would have to be a commercial loan. The commercial rates are a bit higher and they said it would be around 7.25% for 15 years. After 4-5 months of planning and getting quotes from contractors I am now ready to build. Over the last 6 months the Fed has droped there rates several times so I was expecting a better rate also. I met with my loan oficer and much to my supprise the rate went up! They said it will now be 7.8% for a 15 year loan. I ran my credit score and its 740 so its not me. I even paid off my new truck since then. The loan officer said that the Feds rate has no affect on there commercial loan rates and rates went up because loans are more risky than they were 6 months ago. It sounds like they are charging me more because other people are defaulting?

admin answers:

Mortgage and construction loans are based on the bond market and is not directly related to the fed rate. The rates dipped some in January but have since increased over the last several weeks. Also, loans are riskier now as you stated so lenders are more strict with granting them and especially commercial loans often have a higher rate now. Plus the rate you were given was a quote from several months ago I can give a quote today and have it different tomorrow or even later today, that’s how fast the market is changing.

Donald asks…

is there any sight giving diffrent companies’ Canadian commercial loan rate?

admin answers:


are you asking for the rates specific companies are/will be paying to the banks on commercial loans?

Or do you want the comparative best rates being offered by the banks to the generic commercial customer?

the first isn’t available anywhere, afaik

the second is maybe available — try googling “Canada bank loan rates”


George asks…

Is there a separate rate sheet for commercial loan?

or are rate sheet the same for home loan and commercial loan? How do you calculate a loan? (I have to turn in homework next week – and I miss some of my classes and totally at lost) Please help me.thanks

admin answers:

This website will help.


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