The key difference between residential and commercial mortgages in Australia lies in the purpose, loan structure, and lender assessment criteria. Residential mortgages are used to purchase homes or investment properties for personal or rental use, typically offering lower interest rates, longer loan terms (up to 30 years), and lower deposit requirements. Lenders assess applications based on the borrower’s income, credit history, and financial stability. In contrast, commercial mortgages finance properties used for business purposes, such as offices, retail spaces, warehouses, or industrial sites. These loans often come with higher interest rates, shorter loan terms, and larger deposit requirements (typically 20-30%), as lenders consider factors like business revenue, lease agreements, and the property’s income potential. Mortgages101 brokers help clients navigate both types of loans, ensuring the best financing solution for their needs.