Cap Rate
The Cap Rate is a ratio used to estimate the value of income-producing properties, which describes a return rate acceptable to an investor taking the risk of a capital investment. The basic calculation to figure out the Cap Rate is as follows:
NOI / Cost = Cap Rate
Net Operating Income (building rental revenue) / building cost to purchase or value = Cap rate
This essentially tells you how many years it will take to pay off the property using the revenue.
Call Us
604-628-5040
Email Us
| Term | Rate |
|
PRIME |
3.00% |
|
Variable |
2.79% |
|
1 Year |
2.89% |
|
3 Year |
2.99% |
|
4 Year |
3.19% |
|
5 Year |
3.29% |
|
10 Year |
3.99% |
Special conditions apply. Rates subject to change.
