Commercial Mortgages Made Easy In Canada
We provide the same great service and expertise when finding a mortgage for your commercial property! Work with us and get the best terms rates and services for your commercial mortgage.
With TurnedAway.ca, finding the perfect mortgage in Canada is easy! With the help of a licensed commercial mortgage broker, you can now access multiple lenders to compare and choose the best option for your needs. Let’s help you get your commercial mortgage approved. Apply Now!
Looking to leverage equity from a commercial property?
Turnedaway.ca helps commercial property owners leverage equity fast!
What is a Commercial Mortgage?
A commercial mortgage is a loan to either leverage equity or acquire properties used for business purposes, with the property as collateral. Companies or businesses that often apply for this loan type include:
Developers
Partnerships
Limited companies
Corporations
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Types of Commercial Mortgages
The application process depends on the property type. For instance, the max loan-to-value ratio, defined as the ratio of a loan to the value of an asset, vary according to property type.
Commercial Mortgage Term Lengths
Borrowers can choose between terms as short as one year and extending up to 5 years, but they can be amortized for as long as 40 years.
As rates tend to fluctuate over time, you should consider the options available to you before making a decision. If current interest levels are low, locking into a longer term may be preferable. If you expect them to drop soon, a shorter option could be beneficial.
Commercial Mortgage Rates or Loan-to-Value (LTV)
If you’re in the market for commercial financing, depending on the property type, your loan-to-value could be as low as 50% to as high as 75%. Residential mortgages, however, tend to have higher LTVs up to 95%. This discrepancy is due mainly in part to three factors:
- No mortgage insurance
- Borrowers often depend upon the income generated by their property to make payments
- The property valuations may only be an estimate
A professional commercial mortgage broker in Canada, like TurnedAway.ca, can help you find the best mortgage for your needs.
With our extensive experience in the mortgage industry, we can help you quickly find a mortgage with lower interest rates than you could individually.
Commercial vs. Residential Mortgages
Before applying for a mortgage loan, it’s always best to know your options. Here are the main differences between a commercial and residential mortgage:
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6 Smart Reasons To Apply For One
If you’re new to commercial real estate investing, the capital for buying properties outright and the fees incurred for processing the necessary funding sources may need to be added. In this case, a commercial mortgage is an ideal solution.
Lower Interest Rates (than unsecured loans)
A commercial property mortgages often have lower interest rates compared to unsecured borrowing options, making them a cost-effective choice.
Capital Gains
Investing in commercial property has the potential to bring significant capital gain over time. As property prices tend to rise in the long term, buying a commercial property can be a smart way to generate capital growth.
Renting Potential
Maximize the value of your commercial property by exploring opportunities to generate additional income. If you have extra space on your property, consider renting it out to bring in extra revenue.
Financial planning
A commercial property mortgage allows a business to extend the payment over a number of years. This can free up resources and enable you to focus on other important areas, such as growing inventory, managing overhead costs, and training staff.
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How to Apply for a Commercial Mortgage Loan in Canada
Securing a commercial mortgage might require more effort and paperwork than a traditional residential loan, but leveraging our expertise makes your pursuit of a commercial mortgage effortless.
To apply for a commercial mortgage loan, you will need to:
- Demonstrate profitability to the lender.
- Determine how much space you require for your business.
- Have a specific property in mind that you want to purchase or refinance.
- Gather all necessary paperwork.
- Meet with the bank or lender before submitting a bid on a property.
- Carefully review the loan terms, not just the interest rate.
Consider seeking the help of experienced advisors, such as a mortgage broker or financial planner.
Our team at TurnedAway.ca is here to help make your commercial mortgage application easier than ever. As one of Canada’s largest retail mortgage brokerages in this field, we can assist you in preparing your financing requirements.
Put an end to your search today and let us help you find the perfect solution to your financial needs!
Get the Best Advise from Commercial Mortgage Brokers
For over 30 years, Turnedaway.ca have been providing commercial mortgage solutions to business owners in Canada. Our team of experienced commercial mortgage brokers understands all the needs and challenges you face as business owners and investors, and we can guide you through the steps to making an informed financial decision.
Our mortgage experts will present a strong solution and a seamless process that will help you reach your business goals.
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Commercial Mortgage FAQs:
How much is the required down payment for a commercial mortgage?
To qualify for a commercial mortgage with favorable terms and a competitive interest rate, you may need to provide a down payment of 20% to 50% of the property’s total cost. The specific down payment requirement may vary depending on the lender, the size of the loan, and your credit. Discussing the down payment requirement with the lender is important and a decision should only be made after receiving expert advice.
What additional fees can I expect with a commercial mortgage?
In addition to the interest rate, commercial mortgages may come with various other fees, including:
- Appraisal fees to assess the value of the property
- Legal fees for document preparation and review
- Lender and broker fees for processing the loan
- Title and mortgage insurance
- Environmental and building condition report fees to assess the property’s environmental and structural condition.
Talk to one of our brokers today so we can help you carefully review and understand all fees associated with a commercial mortgage before committing to a loan.
What's the maximum amount I can borrow with a commercial mortgage?
The amount you can borrow through a commercial mortgage may vary depending on the lender and the strength of your business. Some traditional mortgage providers, such as banks and credit unions, may have minimum borrowing limits of $500,000 to $1 million. However, other lenders may offer larger loans of up to $40 million to qualified businesses. It’s important to consider your financing needs and find a broker to help you find the best solution for your business.