A commercial mortgage is a type of loan specifically designed for purchasing or refinancing commercial properties, such as office buildings, retail spaces, or industrial facilities. Unlike residential mortgages, which are meant for homes, commercial mortgages typically have different terms, interest rates, and repayment structures. These loans are usually secured by the property itself, meaning if the borrower fails to make payments, the lender can take possession of the property. The amount borrowed often depends on the property's income potential, making it essential for investors to demonstrate the property's ability to generate revenue.