If you’re a business owner who recently acquired a commercial property, you may be wondering about financing options to further expand your business. One of the best options to consider is a commercial mortgage.
What is a Commercial Mortgage?
A commercial mortgage is a type of loan that is specifically designed for businesses or investors looking to buy or refinance commercial properties. These properties may include office spaces, rental properties, mixed-use buildings, and even vacant land sites. Unlike residential mortgages, commercial mortgages are secured against non-residential or commercial real estate and offer more flexibility in terms of repayment periods and financing options.
Benefits of a Commercial Mortgage
The benefits of obtaining a commercial mortgage are numerous. Firstly, commercial mortgages offer lower interest rates compared to other forms of financing, such as unsecured loans or credit cards. This is because commercial mortgages are secured against a valuable asset – your commercial property. Secondly, they offer longer repayment periods, which means you can spread your payments out over a longer period of time, making them more manageable for your business. Lastly, by using your commercial property as collateral, you may be able to borrow more money than you would with an unsecured loan.
It’s important to understand that qualifying for a commercial mortgage can be more complex than qualifying for a residential mortgage. Lenders will evaluate a variety of factors when reviewing your application, including the type and value of the property, your business’s financial history and creditworthiness, the amount of money you are requesting, and your ability to make repayments on time. To successfully qualify for a commercial mortgage, it’s crucial to consult with our expert advisors who can guide you through the process and help you find the best financing solution for your specific needs.
Types of Commercial Mortgages
- Fixed-rate commercial mortgages
With a fixed-rate commercial mortgage, your interest rate will remain the same throughout the entire loan term, providing your business with a stable and predictable payment schedule.
- Variable-rate commercial mortgages
Variable-rate commercial mortgages offer an interest rate that can fluctuate over the loan term, which can be beneficial if interest rates are expected to decrease.
- Balloon payment commercial mortgages
Balloon payment commercial mortgages offer lower monthly payments for a set period of time, with a larger lump sum payment due at the end of the loan term. This can be an attractive option for businesses that anticipate having a large sum of money at the end of the loan term.
- Interest-only commercial mortgages
Interest-only commercial mortgages allow you to pay only the interest on the loan for a set period of time, providing your business with lower monthly payments during the initial loan term.
Our brokerage services are designed to make the commercial mortgage application process as smooth and straightforward as possible. With our expert advice and our access to the best deals on the market, we can help you secure the financing you need to grow your business or investment portfolio.