If you are in business for yourself and are looking to purchase your first piece of commercial property, you will learn very quickly that it can be quite expenses. Most business owners looking to buy their own place – whether it’s a retail location, an office building, etc.. – will have to get some kind of financing in order to make that happen – in other words, a commercial mortgage.
Why should you consider a commercial mortgage for your small business?
For most business owners, it is less expensive to own than to rent – at least in the long-term. When you rent, you are simply paying an expense – money is going into someone else’s pocket. When you buy and make payments on your commercial property, it is an investment. You are paying for something that you can eventually own in full and building equity that you can borrow from in the future if the business needs more cash.
Additionally, if you have more space than you need for your own business, you can always rent out the additional space to other companies and generate another revenue stream.
How to obtain a commercial mortgage?
If you are looking to get a commercial mortgage for your business, plan on saving up a fairly large down payment. You will usually need at least 20% if not more.
When you are ready to apply – or even to get more information – you should sit down with a mortgage broker that specializes in commercial mortgages. In order to be approved for a commercial mortgage, you will need an assortment of documents and your mortgage broker can help you to determine which ones you will need.
Since commercial mortgages are usually much more complex than residential mortgages, understand that the approval process can take considerably longer – three to four months is not unusual.
Contact Akal Mortgages today!
Now that you understand a little more about commercial mortgage and the benefits of getting one, it is time to decide for yourself whether it would be in your company’s best interest to purchase its own property using a commercial mortgage.
To sit down with an experienced mortgage broker who can help you navigate the complexities of commercial mortgages as well as help you to find the best possible interest rates and terms for your business, contact Akal Mortgages today.
When we say YES! We stand behind our promise.®™