COMMERCIAL MORTGAGES

Typically, eligible parties include business owners, investors, and developers with sufficient creditworthiness, a proven track record, and the financial stability to make down payments and cover repayment. Corporate entities, partnerships, and sole proprietors may all apply for commercial mortgages.

The amount you can borrow depends on factors like the type of property, its value, your business finances, and the lending institution's policies. Usually, loan-to-value ratios range from 65% to 85% for commercial properties.

Beyond interest expenses, costs include origination fees, appraisal fees, legal fees, survey charges, and possibly prepayment penalties. These can add up, so it's crucial to calculate the total cost of a mortgage, not just the monthly payment.

Rates vary based on economic conditions, but they typically range between 3% and 12%. The rate will be influenced by your credit rating, property type, and the economy.

To secure a lower rate, improve your credit score, offer a larger down payment, choose a less risky property, or opt for a shorter loan term. Additionally, shopping around and negotiating with lenders can also lead to lower rates.

Key factors include credit history, the quality and location of the property, the borrower's financial health, the term of the loan, prevailing economic conditions, and the bank's lending policy.

Commercial rates are generally higher than residential mortgage rates due to the higher perceived risk associated with commercial loans.

Compare rates from multiple lenders, including banks, credit unions, and alternative online lenders. Mortgage brokers can also be valuable resources for finding competitive rates.

Yes, a deposit is typically required, and its size can vary, but a minimum of 20% to 30% of the purchase price is common for commercial mortgages.