commercial mortgage stress testing

When lenders assess a commercial property loan, one of the first things they apply is commercial mortgage stress testing. In simple terms, the lender is asking a basic question – would the loan still be affordable if conditions changed? Property income can fluctuate. Interest rates move. Businesses have strong years and weaker ones. Because of […]

Commercial mortgage stress testing works very differently to residential affordability checks. With a residential loan, the lender is mainly assessing you – your income, spending and credit profile. The property matters, but your salary underpins the decision. Commercial lending flips that logic. In the commercial world, the property must stand on its own. Lenders ask […]