Commercial mortgages offer business owners and investors a range of options that extend far beyond what a traditional residential mortgage can offer. Commercial lending is a specialised area of business banking, which means it’s not quite as simple as just applying for a regular loan. For this reason it’s important to liaise with a specialist who understands how to best represent your business proposal to the right lender to suit your needs.

Can I just go to my own bank to apply for my commercial mortgage?

The bank or lender you use for your residential mortgage purposes might have the best possible mortgage products available, but can you be sure they’ll have the best commercial loans available too?

No matter how good your current bank might be, it’s always worth comparing commercial mortgages available between as many lenders as possible to be sure you’re getting the best offer available to you. The difference in costs could be critical to your business venture’s success.

Why would I need a commercial mortgage?

Most people believe only really large corporations need commercial mortgages. Small businesses use commercial mortgages for a variety of business-related purposes, including purchasing commercial premises such as offices, shops and warehouses, or even purchasing a business.

However, some investors may also benefit from using a commercial mortgage instead of a traditional residential mortgage. Small property developers may find that if they intend to sub-divide and re-develop a residential block of land where they may construct more than 4 new homes on the old title, then they will often require a commercial loan to fund the project.

My business is only new. How can I prove I can afford a commercial mortgage?

In many cases, commercial mortgage lenders will assess your ability to repay the loan based on the strength of your business venture or proposal rather than looking at your current income levels. The banks understand that the new commercial mortgage will be funding a business proposition and that your ultimate goal is to generate an income from your business activities. This is why the project you’re considering is assessed as a business proposition separately to your own personal financial situation.

How Do I Apply for a Commercial Mortgage?

It’s vitally important you speak with a specialist mortgage broker with experience in commercial lending before you apply for anything. If you’d like to make an appointment for a no obligation consultation for your commercial project, contact us today to discuss your needs.