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. They are often secured by the property itself, meaning the lender can take possession if the borrower defaults. These loans are usually offered by banks, credit unions, or specialized lenders and can cover a range of financing needs, from acquiring new properties to funding renovations. The approval process often involves a thorough assessment of the property's income potential and the borrower's financial stability.