Commercial vs residential
Commercial loans finance offices, retail, industrial, or mixed-use property and often business operations tied to real estate. Lenders weigh tenant quality, lease terms, and debt service coverage.
Residential home loan rules and consumer protections may not apply. Expect shorter terms, higher equity contributions, and recourse guarantees in many deals.
Documentation and covenants
Prepare rent rolls, leases, operating statements, and valuation reports. Lenders may require ongoing financial reporting and restrict additional borrowing without consent.
Interest may be fixed for a few years then review. Break costs and prepayment penalties vary widely by lender and product.
Working with a broker
A licensed commercial broker can compare lender appetite for your asset class and location. LoanReady provides information and introductions only, not credit advice or rate guarantees.
Use calculators for rough payment math, then confirm structure, fees, and tax treatment with qualified professionals in your market.
FAQs
Can I use a home loan for a shopfront?
Usually no. Mixed-use or commercial exposure typically needs a commercial facility with different pricing and legal documents.
What is debt service coverage?
Lenders compare net operating income to loan payments. Higher coverage gives more headroom if rents dip or rates rise.
Are LoanReady numbers a loan offer?
No. Calculators and Lisa chats are general information. A broker or lender sets actual terms after full assessment.
General information only. Not financial, tax, insurance or credit advice.