amplusmortgage120
Underwriting & Financial Evaluation
Residential loans evaluate personal salary, credit scores, and private assets. In contrast, a commercial mortgage relies heavily on corporate financial health-evaluating 2 to 3 years of audited financial statements, operational cash flows, bank statements, and the Debt Service Coverage Ratio (DSCR) of the business or property.
Loan-to-Value (LTV) Ratios
While first-time residential buyers in the UAE can secure up to 80% LTV, commercial mortgages require a higher capital commitment. Central Bank guidelines and commercial lending policies typically cap commercial LTVs between 60% and 70%, requiring a down payment of 30% to 40%.
Repayment Tenures
Residential mortgages stretch up to 25 years to lower monthly payments. Commercial facilities operate on shorter horizons-typically 10 to 15 years-aligning with corporate planning cycles and business asset depreciation.
Corporate Ownership & Titling
Commercial mortgages are specifically designed to allow onshore LLCs, Free Zone entities, or approved foreign holding structures to take direct ownership of the property title deed, enabling corporate asset protection, tax efficiency, and proper balance-sheet representation.
Pricing & Interest Rates
Rather than standard retail rate cards, commercial loans are priced according to risk profile, transaction size, and banking relationship strength, typically calculated as 3- or 6-month EIBOR plus a negotiated bank margin.