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A commercial mortgage is a loan that is secured by commercial real estate, such as an office, building, warehouse, mall, apartment complex, and so on. In return for pledging collateral, business owners get a lower interest rate (and therefore lower total cost of borrowing) vs. an unsecured business loan. They also typically qualify for a larger loan with a longer term, since commercial real estate is a fixed asset that usually does not depreciate in value over time.
If you are in the market for a commercial mortgage loan, then educating yourself with accurate facts — and steering clear of misinformation and myths — is not just important: it is critical! To that end, here are 3 things that you need to know before applying, not after: