Commercial Mortgage

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

1. Pure residential, 1-4 units
2. Pure residential, 5 or more units
3. Residential Commercial Mixed
4. Office & Retail
5. Industrial

Expected timeline

Commercial mortgages take longer as opposed to Residential and could take
anywhere from 60 days up to 6 months.