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 commercial mortgage in Canada is easy! With the help of a licensed commercial mortgage brokerage, 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!
A commercial mortgage is a loan to acquire properties used for business purposes, with the property as collateral. Companies or businesses that often apply for this loan type include:
The commercial mortgage 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.
| Types of Commercial Mortgages | Max Loan-to-Value ratio |
|---|---|
|
Storefront with Apartment/Residential Commercial (Mixed) Individuals |
80% |
| Multi-family residential (1-4 units) | See Investment Property Mortgages |
| Multi-Family Residential (5 or more Units) | 85% |
| Commercial Plaza Mortgage | 75% |
| Office Mortgage | 75% |
| Industrial Mortgage | 75% |
| Farmland Mortgage | 65-75% |
| Construction Projects | N/A |
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.
If you're in the market for a commercial mortgage, depending on the property type, your loan-to-value could be as low as 50% to as high as 85%. Residential mortgages, however, tend to have higher LTVs up to 95%. This discrepancy is due mainly in part to three factors:
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.
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:
| Commercial for Large Real Estate Investment Corporation | Residential for Standard Homebuyers and Small Real Estate Investors | |
|---|---|---|
| Mortgage rate | Higher | Lower |
| Rate Benchmark | Bank of Canada 5 year-bond | Bank of Canada Overnight Rate |
| Maximum LTV | 85% | 95% |
| Maximum amortization | 40 years | 30 years |
| CMHS Availability | Checked | Checked |
| Qualification Criteria | Property income generation, borrowers' financial | Borrowers' financial |
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.
A commercial property mortgage can be a smart financing choice for businesses looking to take control of their finances and plan for the future. These mortgages often have lower interest rates compared to unsecured borrowing options, making them a cost-effective choice.
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.
With the right strategy and patience, a commercial property can be a lucrative investment that generates returns for years to come.
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.
Whether you have an unused room, outdoor area, or storage space, you can monetize your surplus space to help offset the costs of owning a commercial property.
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.
By choosing a payment plan that meets its needs and budget, a business can secure the financing it needs to support its growth and success.
By making mortgage payments, you are building equity in the property and establishing a more solid financial foundation for your business. As you own the building, the value of your investment continues to grow with each mortgage payment, providing long-term benefits and financial stability.
If you need to move to a larger space, opt for financial liquidity, or change the course of your business, an existing commercial mortgage can offer alternative solutions for you.
The remaining mortgage amount can be paid off by selling the collateral asset, or the property can be rented out without losing ownership.
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:
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!
For over 30 years, we’ve been providing commercial mortgage solutions to business owners in Canada. Our team of experienced 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.
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.
In addition to the interest rate, commercial mortgages may come with various other fees, including:
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.
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.
We’re proud to be top-rated among clients in Canada.
Not all lenders provide second mortgages since they come with more risk. But there are usually three options you can explore:
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