A commercial mortgage can help you expand your business or change the location of your company without reducing your working capital or affecting your operating cycle.
0% refinancing fee
Individual repayment schedule
Ability to replace the cost of renting a home – to pay for your own home;
Acquisition or increase of commercial space,
Construction or renovation of offices
Purchase of land for development or agricultural purpose
Economic agents – legal entities that carry out entrepreneurial activities on the territory of an important country, are registered, and operate following the applicable law.
Individuals who perform an entrepreneurial activity in the field of justice, such as a lawyer, advocate, paralegal, notary, bailiff, authorized administrator, mediator, or forensic expert in forensic expertise.
Mortgage loan for non-residential premises:
Commercial property mortgage – these are buildings, land plots, and premises, the use for their intended purpose can be profitable—for example, warehouses, offices, apartments, etc. Apartments are a relatively new type of real estate on the Russian market; they are premises with a kitchen, which are not subject to the regulations for residential apartments. However, they are more and more often used for residence. Nonresidential property can be purchased with a mortgage. The loan for apartments, warehouses, and offices differs from the loan for an apartment or house with only slightly higher interest rates. Mortgage loans to purchase nonresidential real estate can be taken by individuals and owners of small and medium-sized businesses and individual entrepreneurs. Nonresidential property is now as relevant as purchasing a residential property. But in this case, be prepared that obtaining a mortgage loan for purchasing nonresidential premises will involve certain nuances and complexities. Not only individuals but also representatives of businesses, including entrepreneurs, can apply for such a loan.
Terms of granting:
Financial institutions have the right to form their lists of requirements for clients. At least, this is not regulated by law. A person must contact the organization chosen for cooperation and clarify all the issues. The conditions for obtaining a loan:
The presence of citizenship;
In the case of a company, a good reputation and territorial Location, where the credit organization itself is located, are important;
The company must be registered in the territory of the Russian Federation and be a tax resident.
The age of the individual – between 21-65 years;
Area – more than 150 sq.m. and the presence of capital construction status. Location in the region where the bank is registered is also important;
The subject of the transaction is not burdened with encumbrances.
Remember that the utility bills for commercial buildings are usually higher than residential buildings. Maternity capital or other housing subsidies usually cannot be used for such products, nor can you receive a property deduction.
Such programs are launched as a result of state support for small businesses. Both legal entities and individuals have the opportunity to take advantage of them. But drawing up for the latter has several difficulties. It’s worth considering the following features that individuals will face when choosing such a loan:
Higher rates compared to traditional products;
The period for which the money is issued will be significantly shorter. When purchasing a home, the term limit is 30 years. And when buying a non-residential facility will be no more than 10.
The down payment is at least 30%;
There are quite strict requirements for recipients of funds. Stricter than a classic mortgage;
When you buy a building, the land on which it is located usually also becomes part of the collateral; The property becomes mortgaged, which means that the financial institution has the right to dispose of the share and the land in case of problems with debt repayment.
Registration of mortgage is one of the main difficulties. The specifics of the mortgage to purchase non-residential property are such that the property can not instantly be transferred to the financial institution. It is necessary to arrange for the transfer of property rights. There are three ways to implement such a scheme. One of the basic scenarios looks as follows:
The current owner receives an advance payment (it is equal to the first payment).
The property rights are transferred to the new owner.
The subject of the transaction becomes a pledge.
Once these steps are completed, a loan agreement is signed, and the former owner receives the remaining amount.
What’s the best current mortgage for commercial real estate?
The Best Commercial Mortgage Rates at 6.29%
Which Commercial Mortgage has the lowest down payment?
The lowest down payment for the commercial real estate mortgage category is 10%.
How many banks offer Commercial Mortgages?
Currently, 23 banks provide commercial real estate mortgages.