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Commercial mortgages are a little more complex than your average residential mortgage.
Because a commercial mortgage carries a higher risk for the lender, interest rates are generally higher. If you need capital to start or expand a business though, a commercial mortgage may be essential – after all, it takes money to make money.
Commercial Mortgage Differences
Your commercial mortgage’s interest rate depends on current market conditions and how much of a deposit you make. If you provide less than 25% of the property’s costs, the risk to the lender increases, which will result in a higher interest rate.
The term of your mortgage will also depend on what is negotiated. For example, your term could be 10 years or 20 years, and your interest rate could be either fixed, or variable. Fixed-rate commercial mortgages provide stability because you’ll know what your payments will be every month. Variable rate commercial mortgages are tied to market conditions, so 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
- Restaurants
- Health Care Facilities, including Assisted Living, Nursing and Retirement Homes
- Golf Courses
- Gas Stations
A Mortgage Broker Can Help
It can be very difficult for a business owner or individual to shop around for a mortgage and compare what is being offered in the market. Every lender has different criteria for lending, and every business owner has a unique set of needs. Having a qualified mortgage broker can make all the difference. We’ll help streamline the process for you, finding the right lender with the right mortgage for your business – which can end up saving 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.