How much deposit do I need for a commercial loan?

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).

Related

How much money do you need to invest in commercial real estate

How to purchase commercial property with no money down?

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