Anyone who owns a property is eligible for a mortgage loan.
But only those who own a business are eligible for a commercial mortgage loan.
A commercial mortgage is a loan taken using real estate as collateral in order to attain a secure repayment.
These are usually taken on businesses rather than borrowing individually by means of the property you own.
In order to get a loan, you need to survive by means of any genuine business.
You would be offered with a loan by means of the business you own.
It helps you in buying property, thereby extending or developing your own business premises.
Commercial mortgage has a close resemblance to residential mortgage, but the only difference is that it is entirely business oriented.
The loan amount offered is expected to be used for business purposes alone and serves you in promoting and developing your business.
In a commercial mortgage the collateral is a usually a commercial building or other business real estate, whereas for an ordinary mortgage the collateral will be any residential property.
The Two types: 1.
Owner occupied commercial mortgage: With an owner occupied one, the owner of the property would have business occupying at least 51% of the available space in the building.
Here the owner of the building is given higher priority, thereby getting highly benefited with the loan.
2.
Investment commercial mortgage: Under this one, the owner of the property will have business occupying between 0% and 50% of the existing space in the building.
Process: The process for getting a commercial mortgage is simple.
The foremost thing you need to do is apply a documentation regarding your request.
Once the firm reviews your document, your tax returns and financial statements would be forwarded.
Benefits: Commercial Mortgages are often used for a variety of purposes.
The major purpose lies in purchasing the premises of the business.
One can also use these mortgages for the extension of existing premises.
Commercial mortgage supports you in both residential and commercial investments.
You can also invest the amount to develop your property in other manners.
Taking a commercial mortgage is considered as one of the best way to maximize your business finance.
Another major advantage with the commercial mortgage is that, in case of a default repayment, the creditor has rights only to seize the collateral.
He has no privileges to claim against the borrower for any leftover payments.
You may also be aware of bank rates which often rise and fall.
Under such situations, if you have chosen a fixed rate, then you have nothing to worry about.
With a fixed rate, your repayments would remain the same and does not change with the bank rates.
But only those who own a business are eligible for a commercial mortgage loan.
A commercial mortgage is a loan taken using real estate as collateral in order to attain a secure repayment.
These are usually taken on businesses rather than borrowing individually by means of the property you own.
In order to get a loan, you need to survive by means of any genuine business.
You would be offered with a loan by means of the business you own.
It helps you in buying property, thereby extending or developing your own business premises.
Commercial mortgage has a close resemblance to residential mortgage, but the only difference is that it is entirely business oriented.
The loan amount offered is expected to be used for business purposes alone and serves you in promoting and developing your business.
In a commercial mortgage the collateral is a usually a commercial building or other business real estate, whereas for an ordinary mortgage the collateral will be any residential property.
The Two types: 1.
Owner occupied commercial mortgage: With an owner occupied one, the owner of the property would have business occupying at least 51% of the available space in the building.
Here the owner of the building is given higher priority, thereby getting highly benefited with the loan.
2.
Investment commercial mortgage: Under this one, the owner of the property will have business occupying between 0% and 50% of the existing space in the building.
Process: The process for getting a commercial mortgage is simple.
The foremost thing you need to do is apply a documentation regarding your request.
Once the firm reviews your document, your tax returns and financial statements would be forwarded.
Benefits: Commercial Mortgages are often used for a variety of purposes.
The major purpose lies in purchasing the premises of the business.
One can also use these mortgages for the extension of existing premises.
Commercial mortgage supports you in both residential and commercial investments.
You can also invest the amount to develop your property in other manners.
Taking a commercial mortgage is considered as one of the best way to maximize your business finance.
Another major advantage with the commercial mortgage is that, in case of a default repayment, the creditor has rights only to seize the collateral.
He has no privileges to claim against the borrower for any leftover payments.
You may also be aware of bank rates which often rise and fall.
Under such situations, if you have chosen a fixed rate, then you have nothing to worry about.
With a fixed rate, your repayments would remain the same and does not change with the bank rates.