A commercial mortgage is a loan used to buy or refinance property for business use, not for living in.
Here’s how it works in simple terms:
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You borrow money to buy a building or land for a business.
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The property could be an office, warehouse, store, apartment building (with 5+ units), or even land.
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You make monthly payments to pay back the loan, just like a regular home mortgage.
Example:
You want to open a small bakery and find a building that costs $300,000.
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You get a commercial mortgage from a bank.
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You use that loan to buy the building for your bakery.
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You make monthly payments over 10, 15, or even 25 years.
How it’s different from a home loan:
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It’s for business use, not for living.
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You often need a larger down payment (usually 20%–30%).
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The bank will want to see your business plan and income to make sure you can afford it.
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Interest rates and terms can be higher or shorter than regular home loans.
Who uses commercial mortgages?
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Business owners (like store owners, restaurant owners).
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Real estate investors (buying office space or apartment buildings).
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Companies that want to own their building instead of renting.
In short:
A commercial mortgage is a loan to buy property for business. It helps business owners own buildings they use to run or grow their company.
For more information, or to discuss how this program might benefit you, click here to schedule a free consultation with me.