Archive Monthly Archives: September 2010

Ontario Hotel Financing

“Ontario Hotel Financing For Existing Hotel Facilities Can Be Difficult to Secure At Times”

If you’re in need of Ontario Hotel financing, the process may be more difficult that you expected.

Hotel financing is something that is highly influenced by the economy and business activity in general as the greater the economic activity at any one time, the more people will be utilizing hotel services, especially for hotels in resort locations.

Regardless of how strong the property is in terms of valuation and repayment, many major lenders will still not be interested in considering issuing a commercial mortgage at certain points of time when they are just out of the market for these types of assets.

For the commercial lenders  that are looking at hotels at any given time, the requirements for the lower cost money can be significant including but not limited to 1) the hotel carrying a major flag; 2) the hotel being tapped into a national or international reservation system; 3) the loan to value on any mortgage not to exceed 50% of appraised value; the real estate to be located in a major center with a strong and active resale market.

For hotel properties that are “unflagged”, the financing options tend to fall these days into the secondary institutional market where mortgage rates are going to be slightly higher and repayment terms a bit tighter.

Small hotel or motel units in larger centers, even those not flying under a brand name flag, can be financed by private mortgages as well. Depending on the property and the area, private mortgage rates can come very close to bank interest rates on these types of properties making a private mortgage a decent option to consider for a few years, especially during a period of economic slow down like we’ve seen over the last few years.

Even if the cost of private mortgage is slightly higher, they tend to be interest only payments. So while you won’t be reducing the principal balance during the mortgage term, the interest only payments will likely improve your cash flow if you’re refinancing, providing you with some cash flow relief until things start to turn around.

If you’re in need of Ontario hotel financing for a real estate purchase, mortgage refinance, or construction project, I suggest that you give me a call so we can review your requirements together and provide relevant mortgage options for your consideration.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Belleville Commercial Mortgage

“Belleville Commercial Mortgage Financing Is Available Through Our Commercial Lending Sources”

Belleville commercial mortgage financing starts with the specific real estate property you’re trying to finance, the location of the property in the area, and the repayment profile of the business.

Commercial mortgage programs tend to be quite specific in terms of what types of properties, amounts, and credit profiles they are prepared to look at, at any given point in time. The commercial financing sands are always shifting to some degree as lenders work at balancing off their portfolio against the risks in the market.

What this means to borrowers is that locating and securing financing can be a bit of shooting at a moving target where a commercial mortgage lender that will do a deal today may not do the same deal a month from now.

This is one of the main reasons why its important to work with a commercial mortgage broker that maintains a pulse on the property financing market and can identify where to direct your time and effort when seeking a commercial lending solution.

Depending on your requirements, you may also want to consider both institutional and private mortgage financing sources. In many cases these days, the cost of financing gap has narrowed between bank commercial loans and private mortgage lenders. Bank commercial mortgages are always going to be the lowest cost form of property financing, but they are also the hardest to secure and can take a great deal of time to get into place.

The more time constrained you are with respect to getting a commercial mortgage in place, the more likely you should be considering private mortgage options for your Belleville commercial mortgage needs.

This is another benefit that comes from working with a mortgage broker who works directly with both bank and private lending sources in your area. Private lenders tend to be very regional in their lending interests and institutional lenders can have very different portfolio and underwriting criteria from one location to another.

If you need a Belleville commercial mortgage for property acquisition, refinancing, or building construction, I suggest that you give me a call so we can go through your requirements together and discuss relevant commercial property financing options in the area that can meet your needs in the time you have to work with.

Click Here To Speak To Commercial Mortgage Broker Joe Walsh.

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