A commercial mortgage is issued on the key to the acquired real estate, but unlike the usual mortgage loan, the maturity of the repayment is very short, as the rules of 5-7 years, and interest are high. Another of the important points is the initial contribution of up to 40 % of the price of this real estate object. The mortgage agreement must indicate the value, term and amount of the execution of the obligation, in accordance with the requirements of the Federal Law No. 102.9. Under the legislation, it is impossible to lay real estate before its purchase, it is necessary to sign a purchase contract, and then use the property as a pledge to receive a loan in a bank.
Currently, interest rates are at the level of 11% to 16%, but with large interest, commercial loan is not in demand, so banks have to reduce the percentage.
The bank requirements are very stringent, many require security for a loan, a pledge, which sometimes exceeds the amount provided several times. Most Russian banks are not ready to change their conditions, but they are trying to attract customers who have large budgets.
As the rules of potential customers of commercial mortgages are those who do not have their own office or premises and who are denied a license for a certain type of activity. Commercial mortgage is the only way out to continue your own business.
Commercial mortgage in Moscow is gaining momentum, becomes promising. The availability of loans can help develop the country’s economy, as well as business in our country. But can this be an indicator for the development of commercial mortgages? The need for this type of services is growing, but the reaction of banks issuing loans is not unambiguous. Bankers in Russia try not to take risks, prefer customers who can pay. Only large companies with financial stability and guarantee can master the commercial mortgage. If you are a “small” organization, most likely the bank will refuse you.
In the west, with a commercial mortgage, everything is easier. Banks freely trust small business, as companies officially declare their income, unlike our country.
It is the transparency of doing business that will be the key to successful commercial lending in our country.
