The Fairchoice Mortgage Team has a long list of Commercial lenders waiting to earn your business, lending anywhere from $50,000 to $50,000,000.
A commercial mortgage is similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property. Commercial mortgages are usually taken on by businesses instead of individual borrowers
Commercial mortgages are required for many reasons.
For instance one may require…
- Business expansion
- Refinance of existing debt
- Purchase of a commercial property directly linked to a business (e.g.hotel).
The commercial mortgage market is characterized by complexities not present in the residential markets. Lending criteria are not generally publicized and rate and terms vary widely. In an arena once dominated by banks, the best commercial mortgages are now from mortgage conduits,private lenders, and specialty “niche” lenders. We have access to a pool of funds that will work well for you.
Most banks offer commercial mortgages, but you must satisfy the lender’s criteria for qualification. The lender’s decision will depend largely on your current business circumstances – a commercial lender will expect your business to be stable and profitable. They may ask to see your business plan and long-term financial projections, to assure themselves that your business has, and will continue to have, the ability to make repayments on the loan. Some lenders impose restrictions on the uses of commercial premises and certain business concerns may be excluded altogether. The terms of a commercial mortgage will rely on the type of business you’re running and the type of premises or land you want to buy.
The value of a broker within this field cannot be overstated, due to the specialized nature of every commercial mortgage transaction.
Commercial mortgages in Ontario are as competitive as ever and we will make sure to negotiate the best commercial mortgage rate and terms.