What is a commercial mortgage | BDC.ca
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Commercial mortgage

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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.

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