What is Commercial Loan Against Property

A commercial loan against property is a type of loan that is secured against commercial real estate, such as office buildings, warehouses, retail spaces, and other commercial properties.

Commercial loans against property loans are designed to help businesses and investors finance the purchase, renovation, or construction of commercial properties.

Loan-to-Value Ratio

Lenders will typically only lend up to a certain percentage of the property’s value, known as the loan-to-value (LTV) ratio. LTV ratios for commercial property loans are generally lower than for residential mortgages, with lenders typically requiring a down payment of 20% to 30% of the property’s value.