A commercial mortgage is different than other types of mortgages. Interest rates are generally higher, because a commercial mortgage carries a higher level of risk for the lender. However, if you are in business, and you need capital to start or expand a business a commercial mortgage may be essential, because it really does take money to make money.
COMMERCIAL MORTGAGE DIFFERENCES
The interest rate affixed to your commercial mortgage will depend on many factors including current market conditions, and how much of a deposit you provide. If you provide less than 25% of the property's costs the risk to the lender increases and that will result in a higher interest rate.
The term of your mortgage will also depend on what is negotiated. Your term could be 10-years or 20-years for example, and your interest rate could be either fixed, or variable. Fixed rate commercial mortgages provide stability because you will know what your payments will be every month. Variable rate commercial mortgage are tied to market conditions and you could save money if interest rates decline, but you could face higher payments if interest rates increase.
FINANCING FOR DIFFERENT VENTURES
A commercial mortgage can be used for a wide range of purposes and different ventures. Some of these might include:
- Multi-Family Housing and Apartment Buildings
- Mixed Use Properties
- Self-Storage facilities
- Retail Plazas
- Office Buildings
- Warehouse and Light Industrial Properties
- Special Purpose and Unique Venues
- Hotels and Motels
- Health Care Facilities, including Assisted Living, Nursing and Retirement Homes
- Golf Courses
- Gas Stations
A MORTGAGE BROKER CAN HELP
It can be difficult to find a bank or lender that has financing available for your business. At FamilyLenging.ca we can help find the right lender with the right commercial mortgage to suit your needs.
It can be extremely difficult for a business owner or individual to shop around and compare what is being offered in the market, because every lender has different criteria for lending, and every business owner has a unique set of needs. This is just one more important reason a qualified mortgage broker can help streamline the process for you and your business and can help save you thousands of dollars.
EXPAND YOUR BUSINESS AND LET US REDUCE YOUR STRESS
A commercial mortgage can help you secure funds to expand your business. At FamilyLending.ca we can help you get the funds you need to renovate your buildings, expand your business with new locations or franchising, or develop a completely new venture. If you're just looking for refinancing, with better terms and a better interest rate we can often help with that too.
Find out what your best options are. It costs nothing to call and there is no obligation. We have mortgage brokers available for personal consultations at 1-866-941-6678.