In the province of Ontario and throughout the rest of Canada, we are fortunate to have a large selection of commercial mortgage lenders.

While there are not as many commercial lending sources and programs as the residential market, there still are several sources to consider.

The biggest challenge in securing commercial mortgage financing is meeting the requirements of any particular lending source at any given point in time. There are many more things that go into the consideration of a commercial morgage application versus a residential application and the resulting assessment and analysis of the information can also become more subjective.

Commercial lenders tend to be regional in nature and even those that support a national organization still will maintain a regional portfolio and regional guidelines for lending. The primary reasoning for this is that the lender security is the underlying value of the real estate which is driven by the local market forces where the property is located. There can be extreme difference in both valuation and market activity for the same type of commercial property in different areas of the country, or even within a large province like Ontario.

Similar to the residential market, there are both institutional lenders and private lenders active in commercial property lending. This is a very competitive market space as both owner occupied and tenanted commercial buildings requiring financing are considered prime mortgage assets by.

From a borrower point of view, another significant challenge with commercial financing is leverage. The average loan to value property ratio is between 60% to 65%. More recently, some of the larger banks have increased their lending parameters to go up as high as 75% loan to value. And still other commercial mortgage programs that are focused on owner occupied financing, boast lending ratios up to 100% of the property value which is still a pretty rare occurrence amongst active commercial mortgage lenders.

Because of the application complexity and the ever changing lender requirements or at least their changing application of lending criteria, commercial mortgage financing is definitely an area where a mortgage expert provides great value.

A mortgage specialist well versed in commercial mortgage lending can not only provide you with greater access to source of financing, but also help you navigate through the complexities of proper mortgage application and closing procedures.

If your looking for a commercial mortgage, or have any mortgage related questions, I highly recommend that you give me a call so that I can quickly assess your options and help you secure the financing you’re looking for from a commercial mortgage lender.

Click Here To Contact Commercial Mortgage Specialist Joe Walsh

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