Many businesses are looking to Dubai and the UAE as an attractive places to expand their business operations. As e-Commerce grows alongside a thriving retail sector, many businesses are choosing to run their warehousing from the regions. Arranging a commercial mortgage for your warehouse operations can be an intricate and time-consuming process. As a leading digital mortgage company in the UAE, Holo is here to guide you through the intricacies of commercial mortgages and financing if you are considering mortgaging warehouse space.
What is the difference between a residential mortgage and a commercial mortgage?
Commercial and residential mortgage products are different. You will need a commercial mortgage to finance the purchase of warehouse space. You will have the option to apply for a conventional commercial mortgage or an Islamic (Sharia-compliant) loan. As with any mortgage or loan, the lender will assess the property value and the credit history of the individual applicant and the business. There will be fees involved although these will be structured differently with a commercial mortgage. As with any property investment, speaking with an expert, in this case, consult with commercial mortgage specialists, who can help you get to grips with the process, costs, regulations, and lending criteria.
Key Factors Lenders Consider
When applying for a commercial loan for a warehouse, lenders typically consider factors such as the location of the property, the business's financial performance, the business's inventory and equipment, the borrower's experience and business plan, and the overall economic climate.
Commercial lenders will typically offer a loan-to-value ratio (LTV) of up to 70%. This means that the loan amount can be up to 70% of the value of the warehouse property and any inventory, equipment, or machinery. However, circumstances and lenders are different, and the exact amount you can borrow and on what terms will be assessed on an individual basis. A commercial mortgage advisor will be able to answer all your mortgage questions and advise you on how to make your application as strong as possible to commercial lenders.
As you launch and scale your business operations, you can rely on Holo to help you secure your commercial real estate loans and corporate financing needs. Holo offers several commercial mortgage and corporate financing solutions from across a global network. Our team of experts is here to provide commercial lending expertise to help you and your business grow.
Begin your journey with Holo today and let us help you explore and secure your commercial mortgage and corporate financing options.