Whether purchasing commercial real estate as an investment or for your business we provide commercial lending for multi-family, development, retail, office, land, industrial, hotels, farms and construction projects. We offer lending solutions with an emphasis on flexibility and competitive interest rates from over 35 lenders.
A commercial mortgage is a loan secured on commercial real estate. Commercial properties are typically a purchase inside of a corporation and often require a personal guarantee from the borrower.
Lenders typically focus on the revenue of the property and the strength of the borrower as a secondary consideration. Borrowers with lower personal income but strong net worth who do not qualify for residential lending can often qualify for commercial loans.
Down Payment for Commercial Lending
Commercial lending generally requires larger down payments but can offer competitive interest rates. CMHC insured commercial loans have interest rates lower than residential lending. Uninsured commercial loans generally see interest rates about 1% higher than residential lending rates.
If you are not sure where you can access your down payment read this.
Commercial lending takes longer than residential lending. Typically, the subject removal period for a commercial transaction will be 30-60 days.
What types of properties qualify for commercial lending?
- Residential buildings with 5+ doors
- Detached properties with business activity
- Apartment buildings
- Real Estate Portfolios (inter alia financing)
- Retail Space
- Bare land
- Mobile Home Parks
- Industrial Properties
- Construction Projects
Qualifying for Commercial Lending
Commercial lending prioritizes you assets, experience and the property you are buying over your income. This can allow investors who do not qualify for traditional residential lending to grow a real estate investing portfolio under commercial lending programs.
CMHC – MLI Select
CMHC has impemented a new commercial financing program allowing loan to cost up to 95% and up to 50 year ammortization. Learn more here
If you have any questions about the new program let us know. The commercial lending landscape is shifting constantly and investors need to stay informed.
Whether its about shifting cap rates or rate renewal risk we are here to keep you informed and to provide access to our network of expert lawyers, accountants, lenders and realtors.