Why Would Go For Commercial Mortgage Loans?
Posted on December 27, 2017
A Commercial mortgage follows the same principle as residential mortgage loans, but the purpose of availing these loans is different. People can mortgage their residential property to finance their new property with mortgage loans and similarly, businessmen can also avail such mortgage loans to purchase new commercial lands and equipment. Even people can also mortgage their commercial assets to raise their business capital. But all you need is to check the rate of interest, tenure and other hidden costs before taking such commercial mortgage loans.
Different types of commercial mortgage loans:
⦁ You can apply for the commercial mortgage loan to purchase any commercial property. You can buy a restaurant, industrial plants, hotels, shops, office building, factories and firms and many other business properties with this loan amount. Also, you can buy an existing business property with these commercial loans and these loans are also referred to as commercial owner-occupier mortgage loans.
⦁ Apart from that, this loan can also be taken for refinancing. You can take commercial mortgage loans to unlock your existing business capital and to expand your business. In such cases, the lender will check the profit margin of your existing business, and then they will check the valuation of your commercial property.
⦁ You can also apply for the commercial development mortgage loans. Most of the construction and real estate companies avail such loans to buy a property to let it out. In this case, banks or lenders approve the loans after checking the valuation of your property, and you can repay their loan amount after your project is developed. This is a flexible commercial mortgage loan and you do not need to pay your EMI right after buying it.
Why would you use the commercial mortgage loan to raise the business capital?
If you already have a business property and you need to unlock your business capital then commercial business or property loans are the best solutions for you. You can also pay your liabilities and dues with this loan amount. People also avail this loan to refinance their existing financial liabilities. For example, if you own some businesses and have taken personal loans with high-interest rate, you can repay their full amount with your commercial mortgage loans, and in this way, you can also lower the interest rate and save a huge amount of money.
⦁ If you want to avail some business loans and personal loans to expand your existing business, then you need to pay the highest rate of interest. Moreover, banks do not approve much amount as personal loans, and they will take minimum one month to pass it. So commercial mortgage is the easy solution for you and banks or private lenders can easily approve your mortgage loan within one week, and you will get best loan value. Lenders will take your property as security and if you repay their loan within the stipulated tenure, then you can also top-up your loan after a certain timeframe.
⦁ Lenders can provide you long-term mortgage loan and you will take 15 to 20 years to repay the loan amount. But it is suggested to choose the shorter loan tenure, because if you repay them within a short period then you do not need to bear their interest for long.
⦁ Apart from that, you can also avail the tax benefits from this commercial mortgage loans and you do not need to pay any tax on the loan amount. Also, you can avail the tax deduction on your loan installments.
So now you can search the commercial mortgage loans online and check the interest rates of different lenders. Also, check their hidden costs and read their terms and conditions before you apply for the loan.