Dubai and the UAE are increasingly becoming sought-after destinations for businesses looking to expand their operations. Many local and global companies are opting to centralise their warehousing activities in this region. As a prominent mortgage broker in Dubai, Holo is dedicated to assisting you with the complexities of commercial mortgage, especially if you're considering financing warehouse space.

It's crucial to recognize that commercial mortgage loans differ significantly from residential ones. When seeking to finance the purchase of warehouse space, you'll require a commercial mortgage. You'll have the choice between applying for a conventional commercial mortgage or opting for an Islamic mortgage loan in Dubai.

Just like any mortgage, the bank will evaluate both the property's value and the credit history of both the individual applicant and the business. You can also finance using rental income. Seeking guidance from commercial mortgage specialists is advisable, as they can provide insights into the process, associated costs, regulations, and lending criteria.

In the process of applying for a commercial loan for warehouse space, banks consider various factors. These include the location, financial performance of the business, inventory, and equipment, the borrower's experience and business plan, as well as the overall economic climate. Most banks will need a long lease, freehold warehouses are easier to finance but harder to find.

Commercial banks typically offer a loan-to-value ratio (LTV) of up to 70% for such endeavours. This means the loan amount can reach up to 70% of the combined value of the unit, along with any inventory, equipment, or machinery. However, specific circumstances and bank policies vary, and the precise borrowing amount and terms are determined on a case-by-case basis.

A commercial mortgage advisor can address all your enquiries and offer guidance on optimising your mortgage application to appeal to commercial lenders. If you are considering a warehouse mortgage in Dubai, let us help! With a wealth of experience and a trusted reputation in the mortgage industry, Holo stands ready to assist you in exploring our commercial mortgage services in Dubai.

Discover more about our services and commercial mortgage products and let's move your mortgage application forward.