Mortgages by Soin
A commercial mortgage is a loan given to a business to buy a commercial property.
A commercial mortgage is a loan given to a business on commercial real estate where the property is held as collateral.
Commercial mortgages are different from residential mortgages in a number of ways, including the following:
- The loan-to-value ratio be lower for a commercial mortgage, meaning less of the total value of the property is covered by the loan.
- The interest rate on a commercial mortgage is higher than on a residential mortgage.
Commercial mortgages are usually amortized over a period of 20 years or more and repaid in regular instalments
Types of properties
- Pure residential, 1-4 units
- Pure residential, 5 or more units
- Residential Commercial Mixed
- Office & Retail
Commercial mortgages take longer as opposed to Residential and could take
anywhere from 60 days up to 6 months.