Commercial Mortgages: Howto Choose the Perfect Business Mortgage?
Commercial real estate plays a vital role in business development, allowing company owners to invest in their own offices, retail spaces, or production facilities. Unlike residential financing, commercial mortgages are intended exclusively for properties used for commercial purposes. These are long-term loans that can become a reliable financial tool for entrepreneurs, investors, and corporate clients.
What Are Commercial Mortgages?
A commercial mortgage is a loan specifically designed for purchasing commercial real estate. Unlike standard residential loans, the financing conditions can vary significantly depending on the industry, the borrower’s financial situation, and the type of property.
Key Features of a Commercial Property Mortgage Loan:
Loan terms
Up to 15 years, depending on the bank’s policy and the financial performance of the business.
Down payment
From 30%, which is significantly higher
than for residential properties.
Borrower requirements
the borrower must be employed by a company operating in the market for at least two years.
Professional Assistance in Securing a Commercial Mortgage for Your Business
To simplify the application process, business owners can turn to commercial finance companies, which help find the best terms and accelerate the application process. Behomes offers expert assistance in selecting the optimal mortgage terms, tailored to the financial goals of each client. If you’re wondering how to get a commercial mortgage loan, our specialists can help you find the most advantageous option.
Leave a request and get a free consultation!
How Do Business Mortgages Work?
Business owners who are planning to acquire commercial real estate need to understand exactly how do business mortgages work. The process includes several essential steps:
Choosing the right property
The premises must match the business requirements and have strong liquidity potential.
Financial review
Lenders assess the borrower’s income, credit history, and repayment capacity.
Selecting the lender
It’s critical to compare terms from multiple commercial finance companies to find the most beneficial offer.
Loan approval and contract signing
Once the mortgage is approved, the contract is signed,
and the property is pledged as collateral.
To save time and get access to better rates, clients can also work with a commercial mortgage broker, who helps find competitive mortgage deals and streamlines the application process.
Get your free consultation today!
Who Can Benefit from Commercial Mortgages?
Business owners seeking to purchase an office, retail space, or industrial property.
Investors considering a commercial buy to let mortgage, allowing them to buy properties for rental income.
Companies aiming to move out of rented premises to secure ownership and long-term cost savings.
Business owners who need a mortgage for business owners to expand their operations or invest in larger facilities.
Types of Commercial Mortgages
There are several types of business property loans, each tailored to specific business needs. It’s important to note that available products and terms vary by region and country.
Commercial or Business Buy-to-Let Mortgage
Ideal for investors purchasing commercial properties specifically
for rental income.
Commercial interest only mortgage
In this type of mortgage, the borrower pays only interest for a fixed period, with the principal repaid later. However, it’s important
to note that this type of financing is not typically available in Dubai.
Each type of financing has its own features, so before applying, it’s important to review offers from different banks. You can also calculate potential benefits for your business using a mortgage calculator.
Behomes will help you choose the optimal mortgage based on your financial goals. Get a free consultation today!
How to get a commercial mortgage loan?
The process of obtaining a commercial mortgage loan involves several essential steps.
Preparation of Financial Documents
Borrowers need to provide a balance sheet, profit and loss statement, tax returns, and other proof of financial stability.
Review Available Financing Options
The market offers a wide range of commercial financing programs, some advertised as 100% commercial mortgage financing and 100% commercial real estate financing. However, in reality, such offers are rare. Most lenders typically finance only up to 70% of the property value. The actual loan terms depend on the individual policies of each bank, the borrower’s financial profile, and the type of property being financed. That’s why it’s crucial to carefully review available offers, analyze lender requirements, and seek professional guidance before submitting your application.
Consultation with Commercial Lending Companies
Working with a commercial credit finance company helps clarify loan terms, evaluate offers, and identify the most favorable financing conditions. These companies can offer valuable insights into current market trends and help navigate the application process.
Submitting the Application and Finalizing the Contract
Once your application is approved, the next step is signing the mortgage agreement and receiving the funds necessary to complete the purchase of your commercial property.
Need Assistance with Commercial Mortgages?
Our experts are here to help you find the best solutions!
Submit your inquiry and discover how to increase your business income with the right mortgage products. Try Behomes today!
Business Mortgage in Dubai
Commercial property in the UAE is an attractive asset for businesses, and the mortgage business in Dubai offers various financing programs. However, the terms for obtaining a mortgage for business owners depend on several factors, including the company’s financial stability, its operating history, and the type of property being purchased.
Basic Bank Requirements:
The business must be registered in the UAE for at least two years (although in some cases, newer businesses may be considered if additional guarantees are provided).
The business must demonstrate financial stability, including positive account balances, financial reports, and a strong credit history.
A down payment of at least 30% of the property’s value is typically required, though the exact amount depends on the lender and property characteristics.
The intended use of the property must be clearly justified — whether it’s for office space, retail premises, warehouses, or other business purposes.
Choosing the Perfect Financing for Your Business
Banks offer a variety of financing packages depending on the type of business
and property, so it’s essential to carefully review all available options.
Experienced business mortgage brokers can streamline the process, helping business owners find the most competitive terms and reducing the time spent searching for financing.
For expert advice and assistance finding the best mortgage solutions, contact Behomes today!!
Our specialists can help you understand every detail of commercial mortgage loans in Dubai
and tailor financing options to match your business goals.
Any questions?
Check out the FAQs
Still have unanswered questions and need to get in touch?
To start a mortgage broker business in Dubai, you must first obtain the appropriate license, establish partnerships with banks and developers, and build an effective client acquisition strategy. It is essential to follow regulatory requirements and stay updated on the dynamics of the real estate market to offer competitive terms and high-quality services.
For those looking to enhance their expertise and gain deeper insights into the industry, Behomes Academy offers professional training programs for brokers and investors. These courses are based on real market experience and in-depth analytics to help brokers successfully navigate the competitive landscape.
This concept refers to obtaining a loan that covers the full value of a commercial property without requiring a substantial down payment. However, in practice, terms marketed as 100% commercial real estate financing are extremely rare. Most lenders typically offer financing for up to 70% of the property’s value. The availability of such programs depends heavily on the business’s creditworthiness, the type of property, and the lender’s policies. The experts at Behomes are ready to provide guidance and help you find the most suitable financing solution for your business.
This refers to obtaining a business real estate loan with little to no down payment or minimal initial investment. However, in reality, 100 commercial mortgage financing programs offering full coverage of the property’s value are practically non-existent. Most banks and lenders cap the Loan-to-Value (LTV) ratio at approximately 70%. The availability of such programs depends on the borrower’s financial stability, the liquidity of the property, and the specific policies of the lender. Behomes specialists are always available to help you explore the best financing options for your business.
An offset mortgage business account is a type of mortgage-linked account where funds deposited into the offset account directly reduce the balance on which interest is calculated. This lowers the overall interest payments and offers greater flexibility in managing working capital. However, it’s important to note that this option is not available in Dubai. Need professional advice? The Behomes team is ready to assist you with all your mortgage-related queries.
This is financing for companies investing in commercial property. In Dubai, businesses can use B2B commercial mortgages to finance the purchase of office, retail, or warehouse spaces. Terms vary depending on the bank, the type of property, and the borrower’s financial profile.