Mortgage Blog
Mortgage Experts
Commercial Mortgage
November 30, 2021 | Posted by: Sergo Rica
Commercial Mortgage
A commercial mortgage is a unique loan that a business can obtain to finance an office, a building, mechanic shop, gas station, and various other unique properties. Whether you have a property, looking to purchase your first commercial, or simply expand your portfolio, knowing your options is always the first step.
These types of loans differ than the regular loans as they are dependable on projected income, rent roll, cash flow, or even equity based instead of the regular loans where the client’s (owner’s) income is taken into consideration. This is a much more aggressive way to finance a commercial loan as usually the income generated from the commercial property will offset the liabilities.
Commercial loans usually are larger loans than a standard mortgage, anywhere between 1 million to 10 million and more, therefore, having an aggressive approach to the financing will help the approval process.
The down payment also differs when it comes to commercial loans, the range of down payment ranges between 0% down payment all the way to 35% in order to obtain the financing. There are many different factors that dedicate the minimum down payment, but the general ones are: Location, financials/rent roll, and overall condition of the property.
Some types of commercials loans include:
Store Front
Commercial Building – single and multi-unit
Residential Building – multi unit
Mix use properties – commercial at the main level and residential unit on the top
Gas Stations
Medical centers
Industrial Properties
Mechanic Shop
Financial & Business Offices
& More.
These are just a few points to consider when looking into a commercial mortgage. Therefore, speaking to a mortgage broker can help ease the process and guide throughout the process.
We can finance commercial mortgages anywhere in the GTA, Orangeville, Caledon, Barrie, Alliston area & More.
If there are any topics, inquiries, or general questions, please feel free to contact us!
