Commercial Mortgage solutions in Vaughan
Want to buy a property for the new business you are starting? You will probably need to obtain a commercial mortgage.
Here is what you need to know before you start your mortgage search.
What you need to know about a commercial mortgage
A commercial mortgage is a loan taken out on a commercial property. The collateral is the property and the borrowers are generally businesses that are either partnerships, limited companies or incorporated businesses.
With this type of mortgage, assessing credit history is more complicated. As this increases the risk to the lenders, the mortgage rates are generally higher than rates for residential mortgages.
These mortgages also last for a longer time, even up to 15 years.
Qualification criteria for commercial mortgages
There are many criteria considered before a business is deemed eligible for a commercial mortgage. Some of the criteria include:
- Debt service coverage ratio – This is the main criterion considered by lenders. It is the ratio of cash available to complete the required loan payments.
- Credit history – You will need to show a good personal credit score in order to show that your business is creditworthy.
- Business plan – This is to assure the lenders that a strategy for expenditure and profit is in place.
- Financial records – This is required to showcase good credit history.
- Type of business – Your eligibility for a commercial mortgage depends on the type of business you are running. Since this is a complicated process, advice from a mortgage specialist is recommended.
- Down payment – A higher down payment is expected of a commercial property. Your risk profile and credit history determines the down payment expected from you.
Types of commercial properties
Commercial mortgages can be issued for various types of properties, including:
- 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.
Fees to be aware of while applying for commercial mortgage
Commercial mortgage can come with additional fees due to the various necessary procedures that need to be followed. Some of them include:
- Legal fees – A legal aspect is expected when it comes to inspecting and appraising a commercial property.
- Property valuation – This helps determine the market value of a property. The valuation is conducted by an appraiser and cost is dependent on the size and type of property.
- Property condition assessment – This is usually done by an engineering firm and is done to assess compliance with building code obligations and environmental obligations.
- Application fees – This is a standard and is usually a predetermined amount.
At Matrix Mortgage Global, we are dedicated to helping you begin your business venture. That is why we are here to advise, support and fund you as you start your new business or expand the one you have.
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.Apply Now
- 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
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