A commercial mortgage essentially refers to a specific kind of loan that can only be granted to a non-residential property owner, and since the real estate asset is already obligated as collateral, the lender has the assurance that the borrowed money will be repaid in due course.

Furthermore, the borrower may even need to obligate more than one property as collateral at times to compensate for any potential inequality in his or her equity or one’s ability to qualify for the quantum of loan required. Note that the interest rates of commercial property loans are always a tad higher in comparison with residential mortgages.

Commercial constructions that may be financed through such mortgages include condominiums, offices, malls, hotels, retail plazas, industrial buildings, and apartments with storefronts, to name a few. Similar to residential mortgages, commercial property loans may also be secured in the form of first, second, or third mortgages. However, first and second commercial mortgages tend to be much more common when compared to third commercial mortgages.

A commercial mortgage provided by a private lender is often one of the easiest business loans to qualify for, and in many circumstances, a credit check is not required. A private mortgage may prove to be the best option if credit is a concern for you.

A private lender will be more likely to consider you even when a credit check is necessary and your credit is poor. However, your interest rate will be higher if your credit is exceptionally low and you have a history of defaulting on your loan repayments.

Call us now for any queries or further information on how you may benefit by obtaining a commercial property loan from Royal King Mortgages!