commercial mortgage terms?
Hello everyone,
Is it normal to have a commercial mortgage arrangement whereby the interest rate is not fixed for the entire tenor of the mortgage? We were recently quoted on a 15-year commercial mortgage with the rate being fixed for only the first 5 years and thus subject to a re-quote for the second 5 years and then again at the start of the final 5 years. Is this normal? If so, what is the common practice in terms of protecting ourselves from this interest rate risk? Are there guaranteed 15-year fixed rates out there at desirable levels? Any expertise you can provide is much appreciated.
Happy estating!