For a commercial loan, lenders usually want a much bigger deposit (down payment) than for a residential mortgage.
Here’s the typical range:
- 20% – 30% of the property value → Most common requirement.
- 15% down → Possible with strong credit, stable business financials, or if you’re using an SBA loan (in the U.S.).
- 35% – 50% → Required in riskier deals (new businesses, unusual property types, or if borrower has weak financial history).
📌 Example:
- Property price: $1,000,000
- Deposit needed (20%): $200,000
- Loan covers: $800,000
👉 Lenders ask for this large deposit because commercial property carries higher risk than residential (longer vacancies, tenant turnover, business performance uncertainty).
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