As a matter of risk management, commercial lenders (such as banks) are normally willing to accept a mortgage for 100 percent of a property's current market value. That practice is based on the effects of inflation and on the fact that property values almost always tend to increase.

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Commercial lenders typically require a down payment to mitigate risk, as property values can fluctuate and may not always increase.

As a Matter of Risk Management, Commercial Lenders (Such as Banks)