Define: Commercial Mortgage

UK Accounting Glossary

Definition: Commercial Mortgage



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Full Definition of Commercial Mortgage


A commercial mortgage is a mortgage which is secured by real estate which is used by a business. Also, the proceeds of a commercial mortgage must be used for business purposes. Many commercial mortgage lenders require a minimum loan size, often half a million dollars or more. A commercial mortgage may be secured by an on-going business, an apartment building or raw land; a commercial mortgage may even be structured as a construction loan for a commercial building project. A commercial mortgage may be a first mortgage or a refinance of an existing mortgage. When a commercial mortgage is traded or sold on the open market it is called a commercial mortgage security. The opposite of a commercial mortgage is a residential mortgage.


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Commercial Mortgage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 20, 2020 https://payrollheaven.com/define/commercial-mortgage/.
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Commercial Mortgage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/commercial-mortgage/ (accessed: February 20, 2020).
American Psychological Association (APA):
Commercial Mortgage. PayrollHeaven.com. Retrieved February 20, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/commercial-mortgage/

Definition Sources


Definitions for Commercial Mortgage are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.