A commercial mortgage is a loan made using real estate as collateral to secure repayment. This is similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property. Moreover, these types of mortgages are usually taken by businesses instead of individual borrowers. The borrower can be a partnership, incorporated business, or limited company. Hence, assessing the creditworthiness of the business can be more complicated than is the case with residential mortgages.
Commercial mortgages and real estate loan types are available for various types of they mortgages. There are numerous types of commercial mortgages available for your business. You can choose from a wide variety of options.
Commercial mortgages can be used for the following:
* Shopping centres, industrial buildings, office buildings
* Golf courses, resorts, hotels, parking garages, car washes
* Construction loans, ground leases, seconds, wraparounds, etc.
Some of the commercial mortgages are non-recourse. This means that in the event of default in repayment, the creditor can only seize the collateral, but has no further claim against the borrower for any remaining deficiency. Taking out a commercial mortgage is one way of maximising your business finance. Property can be a significant cost for many businesses. Hence, it is important to manage that investment wisely. You can get the best rate of interest on commercial mortgages.
The property pledged can be anything from a home, which can be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All loans are subject to status. Your permission will be sought to carry out credit check on you and your business. If you cannot afford to repay a certain amount, it is suggested you don't borrow the amount.
These types of loans are available to businesses who wish to purchase property, whether it is to expand, purchase a building connected to the business or simply to invest. These loans are also available with preferential rates as compared to other types of loans. Various lenders will have different criteria, based on a range of factors from personal credit history to whether the business itself is stable and in profit. You can get the best commercial mortgage rates from various lenders. It is not difficult to avail a commercial mortgage loan
. The lenders can also provide guidance on the suitable types of commercial mortgage loan.
