The terms real estate financing, rental mortgage, business mortgage and investment mortgage are similar and are used interchangeably.
Real estate financing
This is a general term for real estate financing, for both individuals and businesses. It can refer to:
- Homes for owner-occupancy
- Investment properties (rental)
- Commercial real estate (offices, shops)
- Project development
Real estate financing can therefore include a rental mortgage, a business mortgage or an investment mortgage.
Buy-to-Let mortgage
A rental mortgage is specifically intended for private individuals or investors who purchase a home to rent out.
- Not for private use
- Often a maximum financing of 70-80% of the market value
- Rental income plays a role in financing options
- Higher interest rate than a regular mortgage
Commercial mortgage
A business mortgage is for entrepreneurs who want to purchase a commercial property.
- For offices, shops, catering industry, industrial halls, etc.
- The loan is taken out in the name of a company (BV, VOF, etc.)
- Often a lower financing ratio (50-80%) and higher interest rate than a residential mortgage
- Income and operating results play a major role in the assessment
Investment mortgage
An investment mortgage is intended for financing real estate as an investment (e.g. houses, apartments, commercial properties).
- Suitable for both private and commercial real estate investors
- Rental income is important for financing options
- Own contribution of 20-40% is often required
- Sometimes also possible for real estate projects with a higher risk
