Commercial Mortgage FAQs

Can first time mortgage buyers apply for Commercial Mortgages?

Yes. We help many new businesses get on their feet by securing commercial mortgage deals for them. Whether you're starting from scratch or making a leap from renting premises to buying premises, ClicknGo Mortgage Brokers will assist you in making the right decision.

I have a bad credit history, will that be a problem?

Not neccessarily. Our Commercial Mortgage experts scour the existing mortgage market to locate mortgage deals for individuals and businesses with a wide range of financial situations.

Why should I buy property instead of letting?

As with residential propety purchase, you are making an investment rather than indefinitely paying rent to a landlord. If you happen to buy premises that are too big for your current business, there is the option to sub-let space to other companies.

What is the usual length of a commercial mortgage?

A typical mortgage ranges from between 5 and 25 years. The maximum length for a commercial mortgage is usually 20 years for recently built properties and 15 years for older properties.

How much cash do I need to provide for a down payment?

ClicknGo Mortgage Brokers can arrange mortgages for up to 85% of the value of the property. So it is up to you to find 15% of the purchase price as a down payment.

How should a commercial mortgage be arranged?

Ideally, a separate business should be formed as an entity to lease the building to your operating company. Under this new business, you should then arrange for a non-recourse commercial mortgage to purchase the property. In this way, should you ever default on the mortgage at all, you will protect your operating business against any penalties for the default. For more information, be sure to contact your accountant or tax advisor.

Is there anything I can do to improve my chances of getting a commercial mortgage?

Having a strong case for being able to repay the mortgage is a must. The lender decide the outcome of your commercial mortgage application on your ability to repay the mortgage despite the added securities that factors such as the lien on your property adds to the situation. A comprehensive history and projected future of your earnings will help your application greatly.