Commercial mortgage in Hamilton

Starting a new business? You can get the funding you need with a commercial mortgage. Here is everything you need to know about obtaining a commercial mortgage.

What is a commercial mortgage?

A commercial mortgage is a loan taken out on the equity accumulated by a commercial property. As in home mortgages, the collateral is here is the property and the borrowers are businesses that are either partnerships, limited companies or incorporated businesses.

Assessing credit history and financial stability for a commercial mortgage is far more complicated however. The risk to lenders is quite high, which is why the interest rates for these mortgages are higher than for residential mortgages.

However, these mortgages can last for up to 15 years.

How do I qualify for a commercial mortgage?

Many criteria are considered for a business to be eligible for a commercial mortgage. The following are some of the criteria that need to be met:

  • Debt service coverage ratio – This is the ratio of cash available against the amount required to complete loan payments and is the main criterion considered by almost all lenders.
  • Credit history – A good personal credit history is necessary to prove that your business is creditworthy.
  • Business plan – A good business plan can assure your lenders that you have a strategy in place for to control expenditure and ensure profit.
  • Financial records – These records can help you showcase a good credit history.
  • Type of business – The commercial mortgage you obtain can depend on the type of business you are managing. This is a far more complicated process and it is advisable you seek support from a specialist.
  • Type of business – The commercial mortgage you obtain can depend on the type of business you are managing. This is a far more complicated process and it is advisable you seek support from a specialist.

What types of properties can be used to secure commercial mortgages?

Commercial mortgages can be secured against the following types of properties:

  • Multi-family residential – This type of property includes apartments and townhouse complexes.
  • Industrial buildings – This type of property usually has both office and warehouse space.
  • Office buildings – This type of property has only office space.
  • Retail plazas – This type of property is ideally designed for retail stores.

Will any additional fees be charged?

  • Legal fees – Inspecting and appraising a commercial property is essential to securing a commercial mortgage.
  • Property valuation – This helps determine the value of a property on the market. The valuation is usually conducted by an appraiser and the amount is dependent on the size and type of the premises.
  • Property condition assessment – This is usually done by an engineering firm to assess compliance with building code obligations and other necessary environmental obligations.
  • Application fees – This is a standard and is usually a predetermined amount.

Get in touch with our financial advisors at Matrix Mortgage Global for advice on the best commercial mortgage solutions for you.

Whether you are looking to purchase a new commercial property or want to renovate your existing office space, we are here for you. We offer reliable commercial mortgage solutions. We will explain the pros and cons of commercial mortgages and ensure you make the right decision.

For more information and advice about all our mortgage services, please get in touch with us now

Celebrating 10 Years Of Solution Based Lending for Commercial Mortgages

The business community has played a large role in our success over the years. We are proud to say we have helped to finance all sizes of companies from many different industries across Canada with our commercial mortgage solutions. As a top brokerage in Canada, we care about your financial health, and our custom commercial mortgage solutions are proof of this. In celebrating 10 years of solution based lending for commercial companies, we just wanted to say thank you to our business customers for choosing us when they need financing and commercial mortgages. We are happy we had the opportunity to play a role in your company’s success, and we look forward to doing so for years to come.

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Current Mortgage

  • Property Worth $300,000
  • Current Interest Rate 7.99%
  • Current Payment $2,172
  • Loan Payment @ 10% interest
  • Credit Card @ 17% interest
  • Inventory Factoring @ 28% interest
  • $200,000 Mortgage $1,500/month
  • $25,000 Loan Payment $500/month
  • $25,000 Credit Cards $750/month
  • Total $2,750/month

All In One Mortgage

  • Property Worth $300,000
  • Current Interest Rate 4.00%
  • Current Payment $1,189
  • Car Payment @ 4.00% interest
  • Credit Card @ 4.00% interest
  • Inventory Factoring @ 4% inteterest
  • $250,000 Mortgage $1,189/month
  • $25,000 Loan Payment Paid
  • $25,000 Credit Cards Paid
  • Total $1,189/month

Consolidate Now And Save $1,561/month!!!

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