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Commercial Mortgage Financing Does Not Have To Be Difficult
We provide Commercial Mortgage Financing in Ontario for:
- Apartment Buildings
- Office Buildings
- Retail Malls
- Mixed Use Properties
Commercial Mortgage is different from residential. The structure of commercial deal is more complex and requires proper presentation. The key to successful transaction is to know suitable lenders for type of building that we are financing. Although, there are variety institutions that might consider financing particular property, only a few that will be able to complete mortgage financing, due to changes in internal guidelines, cash reserves, portfolio allocation etc. Most importantly, lenders that do not specialize in certain building types may charge you interest rate that will be significantly higher.
Funding ratio is another obstacle that makes it more complicated to arrange commercial mortgage without having reliable sources and relationship. Even if your property meets lender’s guidelines, they may give you a verbal acceptance, but their funding ratio of commercial deals will exceed portfolio requirements and you will not receive the financing. In some cases, you can wait for the final commitment several weeks but will not get financing until commercial funding ratio will change. This may jeopardize your purchase, refinance and construction schedule and will lead to money lose.
Commercial Mortgage Financing usually takes longer to arrange than a residential mortgagage. Our job is to present it correctly – we review your application, then suggest necessary changes and modifications, indicating missing files and gather as much information about your property as we can.
After assessing your property and presenting to the right lender, we will receive approval with various conditions. The most common and time consuming are commercial appraisal and environmental assessment.
By the time your mortgage comes up for renewal, you most likely will be in a different financial position than when you first obtained the loan. As our financial and life circumstances change, so does the mortgage product that is best for our needs and goals. For example, you may wish to access your home equity to consolidate other debts, or perhaps pay for post-secondary education. Think of your mortgage renewal as a valuable opportunity. An opportunity to get not only a competitive interest rate, but also a mortgage product that better fits your current needs. Or an opportunity to spend time with your loved ones watching the Varadero sunset together.
So, before your mortgage term is over, please give us a call. We will discuss your interest rate options, and can arrange a rate hold for you. In many cases switching to another lender will be absolutely FREE! We will also discuss which mortgage product and options are best for you, and help you with a customized mortgage strategy.