Below Market Rate


Also found in: Acronyms.

Below Market Rate

An interest rate or return below prevailing rates. A below market interest rate may be given to a borrower if he/she has an exceptionally good credit history. On the other hand, a below market return rate usually happens if one takes too little risk relative to the market or too much risk relative to the potential return.
References in periodicals archive ?
There are, however, many economic and other reasons that interest-free and below market rate loans are viable and in many cases very appealing planning techniques.
Under the scheme local councils would be able to borrow money under so-called prudential borrowing rules, which enables them to borrow money from the Treasury at below market rates.
As was reported, more and more lay members are having to take positions that were once filled by clergy and religious at significantly increased costs though very likely below market rates.
Trade Representative Robert Zoellick in the lead, the industrial powers wanted to force developing countries to throw their economies open even more to foreign banks and corporations, while the United States, Britain, and France continued to subsidize their own farmers, who export corn, wheat, soybeans, and cotton at below market rates.
Tax credits awarded by the government through the New Markets Tax Credits program facilitate bank loans at below market rates.
It has 13 home-buying help programs, including down payment assistance and 30-year loans at below market rates.
In addition to these innovative loans, CalHFA enhances affordability and homeownership opportunities through traditional 30-year fixed rate loans at below market rates.
The sale price is controlled to keep it below market rates and a faculty member who decides to sell the house can do so only for the purchase price, plus any capital improvements.
If these incremental costs were completely passed through to its customers, NPPD's already below market rates would increase by 0.
In addition to the grant, buyers get an interest rate that is one half or one percent below market rates, he said.
Of the 20 free-market condos currently for sale, 8 were rented at the initial stage of the project and are now below market rates, while 12 are vacant, offering the new owner the options of either renting the units in at the current rate, or selling them individually on a retail basis.