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Commercial Property News / News of the Money-World #50

NZ Everyday Investor

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Industrial on Property - What's the Leverage Cycle Looking Like?

The banks have, they're changing their attention to the interest cover ratio. So we're still at 65%. So 65 we were at for your industrial type or commercial property. That was always 65. But what the banks are really taking into account is that interest cover ratio and it's going way more prominent in this market as interest rates increase. Do they look at the principal repayment as well or just the interest? Principal repayment as well.

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