06 Mar 2022

Commercial and Industrial Properties: The Basics

Best Interest Duty Introduced

Loans for commercial and industrial properties differ greatly from residential mortgages. Home loans have a minimum threshold and deposit amount. The standard has become $100,000 minimum and a 20% deposit. Once a borrower requests less than $100,000, the loan falls into a different category. For example, personal loans range between $5,000 to $50,000. A line of credit fills in the remaining amount.

To finance the purchase of a commercial or industrial property, most lenders require a minimum of $500,000 and a 30% deposit. The average square foot costs $3,000. Commercial buildings include office spaces, restaurants, and hotels. Thus, these buildings house several units and square footage.

They also double as attractive investments. 

Commercial and industrial spaces move more slowly than residential properties. Plus, they have longer leases. Once an investor finds a tenant, they secure a steady income for at least one year. In the best cases, they secure income for a decade or more.

Since commercial buildings have higher values than single-family homes, they bring greater risk. Therefore, lenders will evaluate the applicant’s proposal. Mortgage House works with investors and entrepreneurs who seek to expand their real estate portfolios. Our loan terms compete with banks and provide innovative ways to lower costs. We remain an innovator in the lending market, and our loan specialists have the tools to evaluate applications and render competitive loan terms including home loan rates.

Commercial and Industrial Properties Conclusion

Entrepreneurs interested in purchasing commercial and industrial properties can contact Mortgage House to obtain financing. Our loan specialists walk borrowers through the details of this loan option. Contact our team today.

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