All About Commercial Mortgages in Abbotsford!

Are you looking for a commercial mortgage? A commercial mortgage is a loan secured for a property that is not currently held by you. There are no predetermined rates for these mortgages, which mean that each application presented to a borrower is extensively searched and shortlisted by a commercial mortgage broker in Abbotsford as they assess the risk levels.

A commercial mortgage is a long-term loan that typically runs for three to twenty-five years; if you are looking for a shorter-term credit, you may want to consider a bridging or development loan.

Who needs a commercial mortgage?

Commercial mortgages are aimed at businesses that are looking to purchase a property or want to release value from an existing property which can be used for commercial purposes.

What paperwork do I need to apply a commercial mortgage? 

When applying for a commercial mortgage, the usual documents needed will include profit/loss statements, tax returns, rent roll, and photos of the property, a personal finance statement and summaries of capital improvements. 

Can I use a commercial mortgage if I have bad credit? 

Yes, if you have bad credit you can still get approved for a commercial mortgage. However, due to your credit score, it will be harder to acquire the loan. In some circumstances, you will have to seek the assistance of a mortgage broker specializing in bad credit commercial mortgage.

Because of your bad credit, lenders consider your profile a riskier one, which may cause the interest rates on the amount you want to borrow to rise. This is to ensure that they can recover their money if you are unable to pay.

What are the advantages and disadvantages of having a commercial mortgage?

Advantages of a Commercial Mortgage

  • There is no scope for rent hikes.
  • There is a chance that you can sublet free space in the building.
  • You can add, change, and decorate whenever you want.
  • Interest on a commercial mortgage is tax-deductible.
  • If the value of the building increases, so will your capital.

Disadvantages of a Commercial Mortgage

  • As you are essentially buying a building, you are forced to pay a substantial deposit, which may be used elsewhere in your firm.
  • If you relocate in the near future, moving may be more difficult because you will be withdrawing yourself from the confirmed mortgage arrangement.
  • It is your job to care for your building; if there are concerns, such as upkeep or fittings, you are in charge of addressing them.
  • If your commercial mortgage is variable, you are opening yourself up to interest rate increases.
  • If the building’s value decreases, so will your capital.

Is a commercial mortgage the right choice for my business?

A commercial mortgage is the best option for your company whether you want to buy your own property or if you want to borrow against the value of your current property.

If you are looking for a reliable mortgage broker near you, Satbir Bhullar is the name to trust. With years of experience, we are here to help your find the best commercial loans in Abbotsford. To find out more, feel free to give us a call.