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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.

What You Should Know

  • Commercial mortgages are typically used for income-generating properties with more than four units.

  • Commercial mortgage rates are higher than residential mortgage rates but lower than construction loans.

  • Lenders assess the property’s income-generating potential and the borrower’s financials.

There are many factor that lender will ask for your specifec proyect. A commercial mortgage is any mortgage for commercial property, including multi-family rental apartments, office buildings, retail spaces, industrial buildings, hotels, and more. While the available mortgage terms are similar to residential mortgages, they usually have higher interest rates and take more time to process due to the complexity of appraising the underlying property. In addition, they take into account the expected cash flow of the property (e.g. rent) and the borrower’s history.


Call us to talk about your specific commercial proyect, so we can work with the lenders that fit your needs.

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