The costs involved with a commercial property loan include:
- Upfront fees: These fees are typically charged by the lender at the time of loan origination and can include things like application fees, appraisal fees, and legal fees.
- Interest: This is the cost of borrowing money and is typically expressed as an annual percentage rate (APR). The interest rate on a commercial property loan will vary depending on the lender, the property, and the borrower’s credit score.
- Stamp duty: This is a tax that is levied on the transfer of property and is typically paid by the buyer. The amount of stamp duty that is payable will vary depending on the value of the property and the state in which it is located.
- Monthly fees: These fees are typically charged by the lender on a monthly basis and can include things like account maintenance fees and service fees.
- Early repayment fees: These fees may be charged by the lender if the borrower repays the loan early. The amount of the early repayment fee will vary depending on the lender and the terms of the loan.
In addition to these costs, there may also be other costs associated with commercial property loans, such as property management fees and insurance premiums. It is important to factor in all of these costs when considering a commercial property loan.