Commercial property needs a different review
A commercial mortgage is secured against commercial real estate. That differs from borrowing against a home to invest in a business. Confirm the actual security and who is responsible for the debt before comparing proposals.
Office, retail, industrial, multi-unit, and mixed-use properties can involve different lender requirements. A property type appearing in this guide is not a promise that financing is available.
Prepare the property story
A provider may ask for:
- Property address, current use, ownership, and proposed transaction
- Current leases, rent roll, operating expenses, and vacancies where relevant
- Existing mortgages and other registered charges
- Appraisal, insurance, environmental or building information as required
- Financing purpose, timeline, and a supportable repayment plan
Value, income, and lender conditions
Commercial valuation may consider income and comparable transactions. A lender may also examine debt service, tenancy, concentration risk, condition, and marketability. Environmental and legal due diligence can affect both timing and cost.
Look beyond the interest rate
Request an itemized explanation of lender fees, brokerage fees, appraisal, legal and registration costs. Ask which costs are paid separately and which reduce the cash you receive.
Compare the same loan amount, term, payment structure, and exit date. A smaller monthly payment can leave more debt to repay later.
Plan for the end before the beginning
A short term does not remove long-term obligations. Identify how you intend to repay the balance: a supportable refinance, property sale, or another documented source.
Check what happens if that plan is delayed. A renewal, a higher property value, or future bank approval should never be assumed.