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Commercial Lending Insights: What Five Major Lenders Are Saying About Rates, Clients & Loans in Northern BC

  • dave20063
  • Oct 1
  • 3 min read

Updated: Oct 9


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The commercial lending landscape in Northern BC continues to shift as interest rates ease and lenders adjust their strategies. To give businesses a clear picture, we heard back from

five commercial lenders—BMO, Scotiabank, TD, RBC, and Beem Credit Union—to share their outlooks on interest rates, what types of businesses they’re prioritizing, and what clients can expect when applying for commercial loans.

Who Are They Looking to Lend To?


    • BMO: Professionals, franchises, and manufacturing clients.

    • Scotiabank: Businesses needing customized financial solutions, particularly in the MUSHA sector (municipalities, universities, hospitals, First Nations, and economic development corporations).

    • TD: Well-managed, adaptable businesses across sectors, with a strong fit for franchised clients seeking long-term partnerships.

    • Beem Credit Union: Open to all industries, but actively building its equipment and operating loan portfolio.

    • RBC: Open to all business opportunities, with sector specialists supporting mid-market, Indigenous, and other client groups.

    Outlook on Interest Rates

    • BMO: About a 54% chance of a rate cut in October and 43% in December.

    • Scotiabank: With the recent cut to 2.50%, more reductions are expected through year-end. Variable rates will decline, but fixed rates may stay stable or rise with bond yields.

    • TD: Forecasts the overnight rate dropping to 2.25% by end of 2025, holding there through 2026–2027. Prime lending adjusts directly; fixed lending may not.

    • Beem Credit Union: Anticipates a 25–50 bps rate cut by year-end.

    • RBC: Sees variable rates continuing to drop, with fixed rates already easing in recent months. Long-term expectation: stable rates just below 5% (the 30-year average).

    Current Rate Ranges

    • BMO: Prime + 0.50% to Prime + 1.50%.

    • Scotiabank: 4.00%–5.00%, customized to product and risk.

    • TD: 4.5%–6% for 5-year terms; shorter terms slightly lower (except 6-month).

    • Beem Credit Union:

      • Variable: Prime + 1% to Prime + 2% (Prime at 4.7%).

      • Fixed: High 4% to high 5% range.

    • RBC: 4.25% to 6.50%, depending on product and term (1–5 years).

    Loan Timelines & Client Expectations

    • BMO: 5–8 weeks for funding.

    • Scotiabank: Roughly 1 month (1–2 weeks for discussion, 2–3 weeks underwriting).

    • TD: Case-dependent, with a focus on transparency and proactive communication.

    • Beem Credit Union: 1–1.5 months typical, with urgent deals in 2–4 weeks (higher fees apply). Documentation includes 3 years of financials, tax returns, net worth, corporate docs, appraisals/rent rolls if applicable, and sometimes a business plan.

    • RBC: 2–3 weeks for term loans, 6–8 weeks for real estate financing, assuming all documents are provided up front.

    How to Connect

Takeaway

While each lender has its own niche focus, some common themes stand out:

  • Rates are trending down, but fixed-rate lending may not drop as quickly as floating.

  • Timelines matter—most deals take about 1–2 months, but readiness of documents makes a big difference.

  • Relationships are key—banks and credit unions alike are prioritizing clients who want long-term partnerships and tailored solutions.

Let me know what you think or if you would like an introduction!

Dave Fuller

 
 
 

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