Commercial mortgages are utilized when you want to purchase a commercial property. Mixed-use properties, high- or mid-rises, student housing, retirement and nursing homes, shopping centers or standalone stores, manufacturing units, warehouses, hotels, resorts, etc., are all examples of commercial properties whose purchases can be financed through commercial mortgages.
Commercial mortgages typically have lower interest rates than construction loans due to the lower risk involved. The commercial property being purchased serves as collateral. However, depending on the type of commercial property being purchased, different lenders might require additional guarantees and collateral from the business owner.
Commercial mortgages can be short- or long-term, with both fixed- and variable-rate options available. The credit check for commercial mortgages involves the credit history of the business but will often also include a credit check of the business owner. The terms and interest rates mainly depend on the business’s financial health and the income potential of the property being purchased.
Compared to residential mortgages, taking out a commercial mortgage is more complex and requires more documentation, including a solid business plan. We’ll work with you to prepare all the required documentation and ensure the process goes as smoothly as possible. Our team is fully equipped to provide several options depending on what best suits your balance sheets.
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