Commercial mortgage
A commercial mortgage is a loan given to a business to buy a commercial property.
Commercial mortgages are different from residential mortgages in a number of ways, including the following:
- The loan-to-value ratio may be lower for a commercial mortgage, meaning less of the total value of the property is covered by the loan.
- The interest rate on a commercial mortgage is higher than on a residential mortgage.
Commercial mortgages are usually amortized over a period of 20 years or more and repaid in regular instalments.
Useful resources
Money and finance
8 purchase agreement terms you need to know before buying commercial real estate
Free eBook: Buying commercial real estate
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