What is a Commercial Mortgage?
A commercial mortgage is secured against a property which is not the loan seeker’s residence. Commercial mortgages generally come into the picture when there is no chance of getting a business loan (business loans usually have an upper limit and are unsecured).
So, after the upper limit of the business loan is reached, lenders/financial institutions offer a commercial mortgage in which the loan seeker has to submit a property as collateral, which means this particular property will be sold to recover the costs in case the business or the individual who mortgaged it, fails to pay back the funds.
How Does Commercial Mortgage Work?
When a business applies for a commercial mortgage, generally the lenders consider the property that it is being purchased as the only security for the loan amount. The loan amount is set to 70% of the market value of the property in question. Lenders generally ask for cash payment of the remaining amount and if a business cannot do that, they can attach one more property as additional security and move ahead.
Commercial mortgages are given for anywhere between 3-25 years. The minimum amount for this mortgage varies from lender to lender.
Why Choose Priority Lending for Commercial Mortgage?
Priority Lending is a financial institution that is dedicated toward providing ethical money lending solutions to its clients. If you are looking for a commercial mortgage for your business, Priority Lending can help you by making the process quick and stress free. Call us now and a Priority Lending Financial Advisor will start the mortgage process as soon as possible.