Refinancing a commercial loan
Illustrative example — not a real client result
Comparing the existing facility with a proposed replacement.
The challenge
A commercial property borrower wants to review an existing loan's pricing, term and conditions.
The approach
- Review the current balance, expiry date, security and any facility conditions.
- Compare proposed repayments, fees, valuation requirements and ongoing obligations.
- Consider the borrower's income, property leases and ability to meet a new lender's criteria.
Example outcome
The example shows how to compare the whole facility rather than just an advertised interest rate.
Refinancing can involve costs and changed conditions. A lower rate alone does not establish an overall benefit.