When buying a commercial property – is it usually worse financing conditions than residential?
Hi, Also, is it usually the same mortgage broker doing both residential and commercial or will i most likely have to work with a different mortgage broker than the one dealt with my residential purchases? THANKS. A: It is definitely worse financing. The theory is that people will stop paying every other bill before they stop paying the mortgage on the home they live in. The down payment is almost always 20% but can be 50%. The interest rate is at least 1/2% above residential rates. It is not unusual to have the loan due in 5,7,10 years. So it never fully amortizes. It will be a different loan broker..
