Banks for agri loans

amacca

Where is the best place/bank to go for an agri loan these days?

To fund the purchase of land.

Best interest rates, flexible on repayment terms, other options etc

I'm already seeing big differences in headline interest rates etc

lakill Farm

amacca wrote: »

Where is the best place/bank to go for an agri loan these days?

To fund the purchase of land.

Best interest rates, flexible on repayment terms, other options etc

I'm already seeing big differences in headline interest rates etc

BOI, UB & AIB all active in the market place.

interest rate are 5% plus - flexibility is down to the industry

you will need 20-30% upfront of the purchase price plus Stamp duty plus professional fees normally or at least than amount in other land with no mortgages on and discount that land by 30%. (eg 10 acres at 10k acre as security - bank will value at 70k not 100k)

keep going

lakill Farm wrote: »

BOI, UB & AIB all active in the market place.

interest rate are 5% plus - flexibility is down to the industry

you will need 20-30% upfront of the purchase price plus Stamp duty plus professional fees normally or at least than amount in other land with no mortgages on and discount that land by 30%. (eg 10 acres at 10k acre as security - bank will value at 70k not 100k)

Sub 4%is available

keep going

lakill Farm wrote: »

BOI, UB & AIB all active in the market place.

interest rate are 5% plus - flexibility is down to the industry

you will need 20-30% upfront of the purchase price plus Stamp duty plus professional fees normally or at least than amount in other land with no mortgages on and discount that land by 30%. (eg 10 acres at 10k acre as security - bank will value at 70k not 100k)

Sub 4%is available

keep going

lakill Farm wrote: »

BOI, UB & AIB all active in the market place.

interest rate are 5% plus - flexibility is down to the industry

you will need 20-30% upfront of the purchase price plus Stamp duty plus professional fees normally or at least than amount in other land with no mortgages on and discount that land by 30%. (eg 10 acres at 10k acre as security - bank will value at 70k not 100k)

Sub 4%is available

locha

What are you getting sub 4 on? Land loan? Overdraft? or house mortgage?

darragh_haven

Getting 4% from BOI. Land purchase.

Durrus Boy

darragh_haven wrote: »

Getting 4% from BOI. Land purchase.

Do you know exactly how they priced it? Bought land 2 years ago and dealt with BOI as well, as have a strong track record with them. Even though repayment capacity was strong, a substantial stake provided (approx. 40% LTV) and good collateral offered, they would only price €100K on their standard variable rate which was 5.75% at the time.
I wanted the loan priced off 1 month Euribor but they told me they wouldn't do a Euribor loan for <€250K. Tried everything to change their mind!!!
That is the difference between money being dear or not.......

darragh_haven

Durrus Boy wrote: »

Do you know exactly how they priced it? Bought land 2 years ago and dealt with BOI as well, as have a strong track record with them. Even though repayment capacity was strong, a substantial stake provided (approx. 40% LTV) and good collateral offered, they would only price €100K on their standard variable rate which was 5.75% at the time.
I wanted the loan priced off 1 month Euribor but they told me they wouldn't do a Euribor loan for <€250K. Tried everything to change their mind!!!
That is the difference between money being dear or not.......

I didn't suggest eurobond or anything of the like. Went in, met bank rep, asked about repayments, discussed and tried to haggle, compared BOi With AIB. Chose the better one. 4% for a secured loan

Milked out

4.5 is as good as I could get, didn't have as much room to haggle unfortunately.

darragh_haven

Milked out wrote: »

4.5 is as good as I could get, didn't have as much room to haggle unfortunately.

The % of what you are borrowing against what your security is has a bearing I would think, but I don't really know

Milked out

darragh_haven wrote: »

The % of what you are borrowing against what your security is has a bearing I would think, but I don't really know

It does I think, also in our case we also had existing debt to restructure in order to afford the new loan which limited us a bit when going to different banks

keep going

locha wrote: »

What are you getting sub 4 on? Land loan? Overdraft? or house mortgage?

Land