By the word 'mortgage', we started to get used recently: it is a relatively new concept for the Russian practice. If your mortgage housing is becoming more common, the commercial real estate mortgage – has only a few precedents. Mortgage real estate or commercial mortgage (the mortgage business), is widespread throughout the world. Western experience shows that with proper operation of commercial real estate – rental premises for offices, shops, service businesses – its yield is comparable to any other small business and allows the use of mortgage loans. The essence and conditions of commercial mortgage mortgage loan issued for the purchase of non-residential buildings: a warehouse, office, etc. Meaning the mortgage is to purchase commercial real estate lending under her own pledge. Unlike residential lending, commercial mortgage is short term loan repayment, but the relatively high interest rates.
Typically, the annual rate credit mortgage commercial property ranging from 12 to 16%, mainly in foreign currency. The term of the mortgage property – a maximum of 12.10 years, and the most common term – 5 years. Borrower must make an initial contribution of 25-40% of property value. In this case, the client must be a profitable balance sheet and at least one year on the market. Legal nuances commercial mortgage commercial mortgage scheme similar to the non-residential mortgage housing: there is the same assessment procedures of the borrower and the object, the requirement for a down payment. But there is a fundamental difference – law does not allow companies to register a mortgage on real property until the conclusion of the sale.