Thinking About Buying Commercial Property?
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. The more information you have about the property itself, the more fairly it can be assessed.
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?
Are you excited to look for commercial property and you want to make sure a commercial mortgage is feasible for your business? Click here to explore Oppono’s Lending Commercial Mortgage Plans or call 905-886-5352 to speak to one of our team members directly.