If you’re considering buying an investment property or taking your growing business out of your basement or spare bedroom and into a bright open workspace, then you might have already started thinking about applying for a commercial mortgage. While the process for applying for a residential mortgage is similar, there are a few things you should know before getting started.
Who Applies for the Mortgage?🏠📄
For a house or condo, the mortgage applicant is usually the person or people who plan to live in it. However, in a commercial space, the application will be under your business name. Because of this, attaining a credit score becomes trickier, which will increase the risk and therefore lead to higher rates.
It’s All About the Business👨🏻💻🏬
Be prepared to present your business in the best light. Your mortgage lender will want to know everything about your business, especially its financial health. Know your numbers and have a sound business plan.
Make Sure You Know What Kind of Commercial Property You’re Applying For🏡💰
Depending on the purpose and function of the building, your mortgage application will slightly change. For instance, you must specify if the property is an apartment building, commercial building or a mixed residential and commercial property.
Understand the Financial Commitment🏦💸
If you’re thinking about becoming the owner of a commercial property, chances are you’re already saving your dollars and cents. No matter what kind of commercial property, a higher down payment is expected—up to 50%—and your interest rates will be higher than a traditional residential mortgage.
Interested in Learning More about Commercial Mortgages?👨🏻💻😀
Call 905-886-5352 to speak to one of our team members directly.👉🏻☎️👈🏻
🏬Oppono Lending Company