Commercial Mortgages
Commercial mortgages are approached differently than residential mortgages due to their use case. The types of properties that a commercial mortgage product may be available for include:
Mixed Use Commercial/Residential
Commercial Office Units
Small Automotive Units
Smaller Strip Plazas
Industrial Buildings
Some lenders provide first and second mortgages for commercial properties with a range of products such as a purchase, refinance, equity takeout and bridge loan. Below are examples of scenarios that demonstrate a typical customer situation.
Example scenario 1:
Thomas is an experienced passenger vehicle mechanic and wishes to purchase his own automotive unit. Using the accumulated credit and income earned as a mechanic throughout the years, along with a strong business plan, Thomas contacts a mortgage broker to assist in finding a suitable lending product for goal.
Automotive units will require equipment in order to complete tasks and maintain daily operations. For this reason, it is important to consider whether to include the tools in the mortgage financing, or to consider separate equipment financing.
Example scenario 2:
Jeremy, Paul and Nathan are experienced IT specialists coming together to start-up a small AI company and wish to purchase a warehouse for their operations. With a business plan in place, built up credit and saved funds between the trio to put towards a downpayment, they contact a mortgage broker to assist them in finding a suitable mortgage.
As data centers require equipment, it is important for the borrowers to consider if they would like to pair financing for the equipment within a single mortgage, or if they would like to keep the two separate.