Commercial mortgage rates and information

The ins and outs of commercial property

Whether you’re an entrepreneur or a savvy property investor, there’s a lot you need to know about purchasing commercial property. First and foremost, you’ll need to secure a commercial mortgage rate in order to finalize your purchase and become a commercial property owner. Commercial mortgages differ from residential rates in a variety of ways, so it’s important that you trust more than just your womanly intuition when it comes to making a final decision.

Figuring out your financing requirements

Different businesses have different financing requirements. In fact, some banks don’t offer commercial mortgage rates for certain business ventures. What’s more, since commercial lenders have different criteria for every commercial mortgage situation, comparison shopping can prove to be quite frustrating, and at times, even impossible. If you’re having trouble securing funding for your undertaking, don’t despair. A professional mortgage broker will be able to help connect you with the appropriate financing provider.

What is a “Commercial Property”?

Commercial properties fall under a variety of categories and can include:

• Multi-family housing and apartment buildings
• Mixed use spaces
• Self-storage facilities
• Retail plazas and office buildings
• Warehouse and light industrial properties
• Special purpose and unique venues
• Hotels and motels
• Restaurants
• Health care, including assisted living, nursing, and retirement homes

What to expect when applying for a commercial mortgage rate

1. Commercial mortgage rates normally carry a higher interest rate than your average residential agreement. This is because there is considerably more risk to the lender to loan money to a new business.
2. First-time commercial property buyers tend to have a lower down payment. If you have less than 25% to offer upfront, prepare for higher interest rates!
3. Commercial mortgage terms are set by the lender and are normally locked in for between 10 and 20 years.
4. Like residential mortgages, commercial lender agreements can be either fixed or variable. Fixed rates offer a certain level of stability because you’re guaranteed a locked in rate. Variable rates fluctuate overtime, but often provide you with better savings over time.

Hoping to expand?

If you already own a thriving business and are hoping to expand operations, now’s the time to consider a commercial mortgage refinance. A commercial mortgage refinance is a great way to generate additional funding using equity that you already have. These funds can be used to complete renovations, set up another franchise, or simply secure better terms and conditions on your current mortgage.

Get your business up and running smoothly with a competitive mortgage rate. Contact a mortgage broker today to learn what financing options are currently available.