Commercial Mortgage Rates

A commercial mortgage rate is when you get a loan and use a real estate as collateral to secure your repayments. It is the same as a residential mortgage, the difference is that a commercial mortgage uses a commercial building as collateral and a residential mortgage uses a residential building as its collateral. Commercial mortgages are usually taken by businesses instead of individual borrowers. The borrower can be a Sacco, incorporated business, partnership, or limited company. Thus access the worthiness of a commercial mortgage is quite complicated compared to accessing that of a residential mortgage.

There are very many types of commercial mortgages around. These include:

• Shopping centers, industrial buildings
• Construction loans
• Golf courses, resorts, hotels, car washes etc.

There are also non resource commercial mortgages; in case there is a default in payment, the lender or the one giving the loan can only gain possession of the collateral and will have no further debts on the borrower. One way of boosting your business is by getting a commercial based mortgage. This is because property is a significant cost and thus you have to manage it perfectly for it to give you the best rates in a commercially orientated mortgage.

You can pledge any property for your business but just take into consideration that it will be taken or you may lose ownership on it if you default in payments. All mortgages are usually subjected to status; this means that they will need your permission to carry a credit check on your business. And you will only be granted a mortgage if you can repay it, otherwise do not borrow if you cannot repay for it.

These mortgages are available to businesses if they wish to expand, purchase property, purchase a building connected to their building or if the business wants to invest. Compared to the other loans, commercial loans are available with preferential rates. Various criteria will be used depending on your lender whether it is looking at the business' credit history, personal credit history, or whether the business is in profit or not. It is not difficult to get a commercial mort. loans, further more the lenders can also provide guidance on the suitable type of commercial mortgage that suits you.