Commercial

COMMERCIAL MORTGAGES FOR YOUR BUSINESS­­­­­

The majority of businesses in Canada will need some form of financing for  either growth, expansion and/or working capital. A commercial mortgage takes time to structure, analyze, propose, underwrite and fund. ATP Mortgage is committed to facilitating businesses of all sizes to assist with accomplishing their business objectives. A commercial mortgage is a financial product that companies would leverage in order to purchase, refinance, or construct a commercial property.

Properties Types Viewed as Commercial:

Properties that are commercial zoned are the only properties that are regarded as commercial. These properties comprise of offices, industrial warehouses, ground level retail, and multi-residential properties (of five or more units). Furthermore, the property you want to invest in needs to be situated in an active rental or resale market.

Listed below are some of the property types that are listed as commercial:

  • Restaurants
  • Multi-residential properties
  • Mixed commercial and residential properties
  • Hotels
  • Office structures
  • Malls
  • Warehouse/Industrial spaces
  • Gas stations
  • Marinas
  • Self-storages
  • Retail stores
  • Vacant land
  • Golf courses
  • Special use facilities

Qualification Criteria for Commercial Mortgages:

Commercial mortgage loans need a number of criteria to be fulfilled like:

  • Credit score – Your individual credit rating as well as your business’ score are going to be verified.
  • Debt to service ratio – It is the affordability calculation lenders use to determine qualification.
  • Business type– The terms and conditions of a commercial mortgage depend on the nature of business along with the property you intend to invest in.
  • Down payment – Contrary to a residential mortgage, your up-front payment needs to be between 20-35% or even 50% based on the dimensions of the property.
  • The situation of your business at this moment – You have got to convince loan providers that your current business is thriving and will keep up a constant profit for the period of your loan. In case your business is not yet functional, a business plan with in-depth financial projections is needed to prove that your business is going to be profitable in the long term.

Time it Takes for a Commercial Loan to Close:

If compared to their conventional alternatives that can close in 90 days approximately, commercial mortgage loans, on the other hand, can take anywhere from two months to one year to fund. Apply now so one of our experienced commercial mortgage brokers can find you the best mortgage product sooner rather than later.

Types of Commercial Mortgage Loans:

Type Maximum Loan-to-Value Ratio
Multi-family residential (5 or more units) 85%
Storefront with Apartments 80%
Commercial and Residential Mixed 80%
Commercial plaza mortgage 75%
Office mortgage 75%
Industrial mortgage 75%
Vacant lot mortgage 75%
Construction financing 65%
Farm mortgage 55%

 

Difference between Commercial Mortgages and Residential Mortgages:

For commercial mortgage loans, it often is hard to compare rates since financing requirements are not characteristically publicized, and terms and conditions could vary considerably. Commercial mortgages have a few fundamental differences when compared to residential mortgage loans. The primary variances are assessment techniques and documents required by the loan providers for underwriting the application. The assessment of commercial mortgages is more complex than residential mortgages and the review time frame can be a lot longer. Loan providers usually emphasize on the value of the property, LTV, business ratings, revenue, financial statements, cash-flow report, current market trends, business risk and budgetary environment. For small-sized establishments, loan providers are also going to verify the owners’ individual credits.

How Can We Help With Commercial Mortgages?

We, at ATP Mortgage, have got an extensive list of commercial loan providers ready to earn your business. No matter if you’re thinking about buying a small startup or perhaps financing a multi-family real estate project, we have the appropriate mortgage lender for your needs. Our financiers will not just provide you with the best possible interest rate; they will furthermore customize your loan to suit your company’s requirements. In many cases, our financiers will compete for your companies’ business.

After our commercial advisor receives your application and has reviewed all the necessary paperwork, you would be presented with the best product available in the Canadian mortgage marketplace based on your qualification. We make every possible effort to make sure that the entire process runs effortlessly to help you accomplish your goals without problems or delays.

We have dedicated, experienced Commercial Mortgage Brokers that specialize only in this field. They will guide you throughout the process to ensure you receive expert advice. Our Commercial Mortgage Manager will work with you in assessing your business needs, collecting paperwork, running assessments and then placing your commercial mortgage business with the right loan provider best suited for your project. Our clients are business owners, self-employed sole proprietors, investors and professionals looking to buy, sell or refinance commercial properties. Working with a dedicated Commercial Mortgage Broker will save you time and money so that you can focus on your business.

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