Business man pressing mortgage button. Toned photo

If you consider buying property to extend your business you will probably need commercial mortgage. Before you apply for the mortgage, it is important to determine the amount of monthly payments that your business can afford. It is also important to take into account the potential growth of the business because relocating too often can also become as expensive errand.

Buying business premises can be beneficial as it provides stability to the business and therefore the property itself becomes a valuable asset. Your mortgage repayment is like monthly rental installments on your property. Fixed rate mortgage offers you the benefit of paying fixed monthly installment at the end of the month. Fixed monthly mortgage doesn’t offer any sudden increase in your monthly installments. Also you can sublet any free space in your property which can reduce your monthly payments. One of the benefits of commercial mortgage is that its interest payments are tax-deductible. The value of your business premises will increase by the time and will your capital worthy. You can also extend your existing premises as your business flourishes avoiding the relocation cost.

However commercial mortgage come up with some disadvantages as well. Besides the monthly installments you need to have substantial amount of money in your hands to run other important business related errands. If you own a business it will become difficult for you to relocate business because selling the premises is not an easy task. On the other hand, if you rent out the premises, you will be able to negotiate your rental agreement or you can find another party that can take over the tenancy. If you are under variable rate mortgage your monthly interest rate may increase by the time. Any fall in the value of the property will decrease your capital.

Avon Financial offers you the advice from suitably qualified financial advisers. It provides you the best mortgage services to suit your needs giving you impartial advice on products and steering you through the mortgage application process.

Contact us:  info@avonfinancial.com
Ph: 905-216-5563

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