A commercial mortgage is an option for businesses and investors who wish to purchase or refinance commercial properties with the goal of generating income. Our competitive interest rates and partnership with a wide range of lenders allows us to find solutions that meet the individual needs of each customer.
Are you a business or investor looking for a commercial mortgage to aid with the purchase or refinance of commercial property? Our team provides commercial mortgages for purchasing and refinancing on all types of commercial properties. Whether it’s high-rise residential, industrial, shopping centers, multi-family housing, office space and land, our expertise covers a very diverse range of real estate development and investment properties
WHO NEEDS A COMMERCIAL MORTGAGE?
Commercial mortgages are available to people who are searching for financing ventures to cover costs of commercial purchases such as:
New Commercial Construction
Low-rise, mid-rise or high-rise commercial, industrial or institutional edifices
Refinance and Cash-Out to meet any urgent business expenses
Raw land financing
Debt consolidation/refinance and cash out to meet business expenses
Commercial Mortgages are designed for businesses and investors who wish to purchase or refinance commercial, income-producing properties and offer a flexible way to raise capital.
Either way, we are here to help your business financing needs through fixed or variable rate term loans or variable rate line of credits. Each loan must be secured by real property and we may lend up to 65% of the property’s appraised value. Commercial lending does carry higher risks than residential mortgages and therefore interest rates are generally higher to compensate. Additional fees may be charged for environmental assessments and annual reviews over and above the initial application fee and appraisal costs to determine the value of the property.
Compare to the Residential Mortgage, The qualification criteria for Commercial Mortgage is different.
Debt service coverage ratio. This is the main criterion that lenders will look at and is essentially the ratio of cash available to the required loan payments. Most lenders will apply a loan-to-value ratio and will expect you to invest some of your own money into the purchase to balance the odds.
Credit History. Most lenders will require a good personal credit score as well as evidence that your business is creditworthy. There are lenders that may accept applicants with a less-than-perfect credit history, but they are few.
Current business situation. If your business is up and running, commercial lenders expect your business to be profitable and steady.
Type of business. The terms of a commercial mortgage are dependent on the type of business as well as the property you want to purchase. This can be quite a complex area so it is advisable to acquire a specialist, either a solicitor or chartered surveyor, to advise you.
Down payment. A higher down payment is expected of a commercial property. A typical down payment on a mixed property falls between 20- 35%. A pure commercial property is typically higher, near 50%. Your risk profile directly determines the down payment that is required of you.
Whether you are looking for a commercial mortgage to finance the purchase, renovation or refurbishing of properties, our knowledgeable Team of Mortgage Experts will work with you to find the right solution for you and your business. We can help with your most basic or sophisticated commercial mortgage needs, including multi-family residential properties, subdivision developments, retirement homes, industrial complexes and manufacturing premises. We have a solid knowledge and understanding of your local community, market and economy. In addition, having local decision-makers means we can offer timely turnaround on your application.