{"id":33954,"date":"2024-03-25T14:22:39","date_gmt":"2024-03-25T14:22:39","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/?post_type=blog&p=33954"},"modified":"2024-05-03T12:41:37","modified_gmt":"2024-05-03T12:41:37","slug":"everything-you-need-to-know-about-commercial-mortgages","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/au\/blog\/everything-you-need-to-know-about-commercial-mortgages\/","title":{"rendered":"Everything you need to know about commercial mortgages"},"content":{"rendered":"
Commercial mortgages are also referred to as \u2018business mortgages\u2019 taken out by business owners who want to purchase a property for commercial use. Businesses may consider buying their own building or lot to avoid increasing rents as well as management and maintenance fees.<\/p>\n
There are also other special types of commercial mortgages<\/a> like buy to let mortgages<\/a> that you purchase with the intent of renting it out for profit. Business refurbishments and property improvement can also be covered by commercial mortgages.<\/p>\n In this article, let\u2019s talk about what a commercial mortgage is and whether or not it\u2019s the best option for your business.<\/p>\n Unlike residential mortgages which are typically \u2018off the shelf products\u2019, commercial mortgage criteria can widely vary from lender to lender since they are generally tailored solutions to help businesses achieve their goals. Whether you\u2019re a sole trader<\/a>, a limited company, LLP, trust, or partnership, there\u2019s a wide range of lenders\u00a0 and options in the market, but of course, there are qualifications involved:<\/p>\n To qualify, there are six main things that lenders look into:<\/p>\n Swoop\u2019s team can help you assess whether or not you qualify for a commercial mortgage. We will match you with the right lender that best fits your goals and circumstances.<\/p>\n The following are the main documents you need to prepare to submit a commercial mortgage application:<\/p>\n There could be other documents you need to prepare depending on the lender\u2019s exact requirements. If you\u2019re looking to secure the mortgage to rent the property out, you need to provide the tenancy details you planned out including the expected monthly income and a full copy of the lease.<\/p>\n The size of your deposit varies depending on the lender, but it\u2019s typically somewhere from 20% to 40% of the property cost. You are free to try negotiating the amount. In fact, some commercial mortgages go without a deposit (100% loan-to-value ratio) if you can show enough security in the form of assets or properties. However, take note that if you default on the mortgage, the assets or properties used as security will be repossessed.<\/p>\n The terms can be as little as 3 years or as long as 30 years. The amortisation period won\u2019t affect the interest rate, but you\u2019re typically free to choose between fixed and variable interest rates.<\/p>\n The interest rate depends on the perceived risk determined by the lender. Those applications that are perceived to be high-risk may go 3-5% above base rate. Other factors include the ability of the business to afford the repayments or whether or not the business has sustainable sources of income for the loan.<\/p>\n In general, commercial mortgages are seen as more high-risk than residential loans, which leads to higher interest rates. However, commercial mortgages have better interest rates than traditional loans since the money is borrowed against the property in case the borrower defaults on the loan.<\/p>\n To get the best interest rates, the key is to display a strong financial profile and take your time shopping around for lenders. Swoop can help you get matched to discover the most competitive rates in the market.<\/p>\n Yes, you can. However, some lenders may charge an early repayment fee or some place a limit on how much you can overpay per year.<\/p>\n If you\u2019re still on the fence about applying for commercial mortgage, check the pros and cons below to make an informed decision<\/p>\n Commercial mortgages actually offer lower interest rates than other types of financing. Also, if things change along the way\u2013 like you need to move to a bigger space or close your business, you can still manage the monthly payments by either renting out or selling the property. Try our commercial mortgage calculator<\/a> today to figure it all out.<\/p>\n Allow our team of experts to help you find and secure the best deal tailored to your specific needs. We will match you with the right lender that fits your profile! Sign up now<\/a> to get started!<\/p>\n","protected":false},"excerpt":{"rendered":" Commercial mortgages are also referred to as \u2018business mortgages\u2019 taken out by business owners who want to purchase a property for commercial use. Businesses may consider buying their own building or lot to avoid increasing rents as well as management and maintenance fees. There are also other special types of commercial mortgages like buy to […]<\/p>\n","protected":false},"author":54,"featured_media":33957,"comment_status":"closed","ping_status":"closed","template":"","category":[1368,1669],"acf":[],"featured_image_urls":{"full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-scaled.jpg",2560,1707,false],"thumbnail":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-300x200.jpg",300,200,true],"medium_large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-768x512.jpg",768,512,true],"large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-2048x1365.jpg",2048,1365,true],"image_blog":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-408x252.jpg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-30x20.jpg",30,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-80x53.jpg",80,53,true]},"post_excerpt_stackable":" Commercial mortgages are also referred to as \u2018business mortgages\u2019 taken out by business owners who want to purchase a property for commercial use. Businesses may consider buying their own building or lot to avoid increasing rents as well as management and maintenance fees. There are also other special types of commercial mortgages like buy to let mortgages that you purchase with the intent of renting it out for profit. Business refurbishments and property improvement can also be covered by commercial mortgages. In this article, let\u2019s talk about what a commercial mortgage is and whether or not it\u2019s the best option…<\/p>\n","category_list":"Blog<\/a>, Commercial mortgages<\/a>","author_info":{"name":"ayeshakhan1111","url":"https:\/\/swoopfunding.com\/au\/author\/ayeshakhan1111\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-scaled.jpg",2560,1707,false],"thumbnail":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-300x200.jpg",300,200,true],"medium_large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-768x512.jpg",768,512,true],"large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-2048x1365.jpg",2048,1365,true],"image_blog":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-408x252.jpg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-30x20.jpg",30,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2024\/03\/commercial-mortgage-1-80x53.jpg",80,53,true]},"post_excerpt_stackable_v2":" Commercial mortgages are also referred to as \u2018business mortgages\u2019 taken out by business owners who want to purchase a property for commercial use. Businesses may consider buying their own building or lot to avoid increasing rents as well as management and maintenance fees. There are also other special types of commercial mortgages like buy to let mortgages that you purchase with the intent of renting it out for profit. Business refurbishments and property improvement can also be covered by commercial mortgages. In this article, let\u2019s talk about what a commercial mortgage is and whether or not it\u2019s the best option…<\/p>\n","category_list_v2":"Blog<\/a>, Commercial mortgages<\/a>","author_info_v2":{"name":"ayeshakhan1111","url":"https:\/\/swoopfunding.com\/au\/author\/ayeshakhan1111\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/33954"}],"collection":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/comments?post=33954"}],"version-history":[{"count":5,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/33954\/revisions"}],"predecessor-version":[{"id":35112,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/33954\/revisions\/35112"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media\/33957"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media?parent=33954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/category?post=33954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How to get a commercial mortgage<\/h2>\n
How to qualify for commercial mortgage<\/h3>\n
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Documentations required for commercial mortgage<\/h3>\n
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How much is the deposit for commercial mortgages?<\/h2>\n
What is the amortisation period of commercial mortgages?<\/h2>\n
What are the interest rates for commercial mortgages?<\/h3>\n
Is it okay to pay off a commercial mortgage early?<\/h3>\n
Pros and cons of commercial mortgages<\/h2>\n
Pros<\/h3>\n
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Cons<\/h3>\n
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Is commercial mortgage the right choice for your business?<\/h2>\n
Let Swoop do the hard work for you!<\/h3>\n