A property has 21,000 square of rental space. The vacancy and credit losses is expected at 8% and operating cost (without capital cost allowance) is 28 percent of effective gross income. Financing details for this property is as follows: down payment is 30% the loan is $400,000, Interest rate is 10% per annum compounded semi-annually, term of loan is 12 years. The cost of the down payment is 6.50% above the effective cost of borrowing and 50% the capital gains is taxed. What is the effective cost of borrowing if you have cash on has an processing fees based on the loan