Commercial Mortgages Potentially On The Rise

“Commercial Mortgage Lending In Canada Could Be On The Rise In A Number Of Ways”

Commercial mortgage lending is very much driven by a balanced lender portfolio that takes into account such things as the type of property, industry, and geographic location.

The more diverse the lending portfolio and the higher the quality of the commercial mortgage borrower, the more apt a commercial mortgage lender is going to be to extend more credit.

Right now, there is a trend in Canada whereby more U.S. retail is entering the country to take advantage of the higher dollar and the high per capital spending that exists in Canada which is starting to rival what these retailers are experiencing in the U.S.

Here’s a recent article that provides some further insight from a recently completed report by Colliers Canada …http://www.canequity.com/blog/2011-05-influx-of-american-retailers-leading-to-more-commercial-mortgages/

If the trend mentioned in the report continues and more and more high profile, financially strong retail companies enter the Canadian market and require commercial loans, this will not only increase the commercial lending for the related type of commercial property, but it will likely also help lenders broaden out their portfolios and achieve a larger, stronger portfolio in the process.

This is potentially good news for anyone looking to acquire, renew, or expand their commercial mortgage financing in the future.

Commercial lending as a whole has remained tight since 2007 and has been slow to loosen up as lender remain cautious as to further losses they may have to endure from their existing portfolio.

But nothing loosens up the purse strings more than solid economic growth numbers month after month and credit worthy borrowers looking to acquire capital on properties in major metropolitan areas.

As a commercial lending portfolio grows through lower risk loans, it has the capacity to either cover off existing credit risk in the portfolio or branch out into more commercial markets and take on slightly higher risk opportunities.

It remains to be seen if the U.S. retail expansion in Canada will create a positive commercial property financing domino effect, but it is a strong indication of the market continuing to come around and get back to lending money on a more regular and predictable basis.

From a supply side, the commercial mortgage market has also become stronger from more private lenders entering the market and being interested in commercial properties.

At least in the near term (as nothing is very predictable these days), the commercial mortgage market in Canada appears to be strengthening for deals large and small.

If you require commercial mortgage financing for a property you own or are looking to acquire, I recommend that you give me a call so we can go through your requirements together and discuss different financing options potentially available to your in the market.

Click Here To Speak With Toronto Mortgage Broker Joe Walsh

Commercial Mortgage Keys

“Here Are Some Of The Key Factors For Getting A Commercial Mortgage In Place”

Commercial mortgage financing as well as other forms of business financing remain the most perplexing to business owners since the start of the 2008 recession.

The process for locating and securing a commercial mortgage has become more difficult in a lot of ways, which is catching business owners and property owners off guard as they try to adjust to the new order to things in the market.

Unfortunately, most of the changes in commercial property financing are only understood or internalized when someone is in the middle of trying to get a mortgage in place which may be too late if they are dealing with some sort of time line.

The new order of things in commercial mortgage financing has fewer lenders in the market, lenders in general taking on a more cautious approach, and the costs of completing all the mortgage requirements on the rise.

That all being said, the commercial property market is an enormous market that will always have available sources of financing.

The key is to understand how to approach the market to get the results you’re looking for.

To that end, I would like to provide some keys to commercial mortgage financing in 2011 and beyond.

First, regardless of how many times you have arranged or secured commercial mortgage financing in the past, accept that the world has changed since 2008 and that you’re going to have to up grade your knowledge a bit to properly navigate the market. I find this is a significant issue for many business owners I speak to. And because the commercial market has been so accessible for literally decades, individuals have a hard time believing that things have changed significantly. Unfortunately its not very comforting when I get a call months later saying, “you were right, I should have listened to what you were telling me.

Second, outside of market knowledge, the most important key to business property financing is time. You need to start the process earlier and basically assume it will take longer and be harder than you think. This is not to paint a gloom and doom view of the market. Its more about setting yourself up for success and acknowledging that most things in the commercial mortgage lending space are moving slower than what you likely have become accustom to from past experiences.

Third, get professional help to assist you with the process. An experienced mortgage broker who understands the commercial financing market can potentially save you considerable time and money versus trying to figure out the shifting sands yourself.

Lenders are in and out of the market.

Lenders requirements can add considerable time that you may not have which should be built into lender selection.

Coordination of the lender’s third party requirements can be considerable, costly, and time consuming.

Too often in the last 12 months I have had someone call me, explaining that they are 6 to 9 months into the commercial property financing process and are running out of time because of their lack of understanding of the market and the options they chose to pursue.

If you need a commercial mortgage for property acquisition, mortgage refinance, construction, bridge financing, or debt consolidation, give me a call and we’ll go through your requirements together and review potential financing strategies.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Commercial Mortgage Customization

“Because Each Commercial Mortgage Is Basically A Customized Lending Solution, Substantial Time And Money Can Be Lost Thinking Otherwise”

Other than the word mortgage, there is really nothing very similar about a commercial mortgage and a residential mortgage.

A residential mortgage is placed on mass volume through customized programs that are designed to deal with large volumes of similar application requests. Success in the residential home mortgage market is based on speed and efficiency. Competition is large and margins are small, so the faster you can assess a file and either decline it or move to funding, the more likely it is that you’re making a profit.

Whether you’re talking about uninsured or an insured mortgage loan, a reverse mortgage, or a home equity line of credit, all these different types of residential mortgages are basically commodities with other similar products on the market.

With commercial mortgages its a whole different game.

While lenders can advertise very similar offerings, rates, and terms for their commercial property lending programs, the reality is that each commercial mortgage is a customized solution, basically different from any other commercial or industrial mortgage.

The reason for this is the high variability of both commercial property types and revenue streams that can be generated by one property compared to the next. The closet commercial mortgages get to residential property financing is with large multi unit residential mortgage requirements, condo financing, and other investment properties where the income is from tenants and the properties are part of a larger market for similar real estate.

For just about everything else, there is a more customized approach to non residential mortgage financing where mortgage lenders will be very selective from day to day and month to month as to what they are prepared to finance and what they are not.

Another reason for constant changes in lender approach to commercial deals is the fact that many commercial buildings can be worth substantially more than the average residential property. Having too many commercial mortgages on similar properties in similar industries can create concentration problems in the lenders portfolio, causing them to basically stop lending on certain types of properties and/or industries for periods of time.

With all this being said, its very, very, very easy to waste a ton of time AND money chasing lenders who can’t help you.

And it may not be that they don’t the type of deal you are requiring.

They may even have some in their portfolio when you apply.

But for the reasons mentioned above and potentially others, its all about what they are prepared to do at the moment of time when you apply.

That’s all that really matters.

So the key to commercial financing, if there is one above all others, would be to make sure you’re hunting with a rifle and not a shot gun, only working with relevant lenders that are in a position, today, to consider and fund your particular requirements.

Everything else is a waste of time…which can easily stretch into 6 months+ wasted.

If you’ve in need of a commercial mortgage right now, I recommend that you give me a call so we can go through your requirements together and discuss different financing strategies as well as the sources that are currently funding similar requests.

Click Here To Speak With Joe Walsh, Your Toronto Mortgage Broker

Speed of Commercial Mortgage Financing

“Starting Early Is The Key To Commercial Mortgage Financing”

It’s a good idea not to use the word “speed” and the phrase “commercial mortgage financing” in the same sentence as they’re contradictory at best.

Commercial mortgage lenders are still taking their time these days assessing, approving, and funding commercial property financing deals.

As the economy continues to move forward on the road to a full recovery, the financial markets maintain a slow and cautious pace with respect to most things business financing related.

For business owners, entrepreneurs, or property owners looking forward into 2011, the key message here is to start the process for seeking a commercial property mortgage as early as possible and allow yourself as much time as possible to complete a financing transaction.

Faster money is going to be more expensive money for the most part, so if you believe you qualify for the lower cost commercial mortgage programs out there, then its going to be important to allow lots of time to secure them. This cautious market approach has been in effect now for almost two years and there isn’t much sign of it changing any time soon. Buyers and sellers have been slow to incorporate these changes into their thinking and planning. As a result deals falling apart when financing can’t be arranged in the time lines being allowed by buyers, sellers, and property owners looking to refinance.

Other than starting sooner, the next best action you can take to speed things up is to make sure all your pertinent financial information is up to date. If repayment of the mortgage will depend on an existing business, make sure that the last year end financials have been completed and that the current interim financial statements are up to date. These items are going to be required and can hold the commercial mortgage financing process up if they are not up to date or complete.

Another way to gain speed is to work with an experienced commercial mortgage broker who can help you hunt for money with a rifle instead of a shot gun and help cut back on the time wasted talking to commercial mortgage lenders that either can’t help you, or will have a very low probability of financing your deal in the time you have to work with.

If you need to secure a commercial mortgage for property acquisition, construction, or refinancing, I suggest that you give me a call so we can go through your requirements together and go through commercial mortgage financing strategies that can meet your requirements.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Regional Commercial Mortgage Disparity

“Depending On Where Your Commercial Property Is Located, There Can Be Considerable Differences in Commercial Mortgage Offerings and Interest Levels”

Commercial mortgage financing, like most everything else, is driven by supply and demand dynamics, most specifically in the commercial real restate market. And its not just the activity level of the market, its the size of it as well. For instance, major economic centers such as Toronto are large in size and maintains a very active market. As a result, there is a large volume of commercial lenders  that set up shop or target this market.

Many of the very same lenders focused on the larger markets will also exist in regional markets or smaller markets across the country. But existence or presence in a market does not necessarily translate to a same or similar approach to financing commercial property. More remote markets will end up being serviced by fewer lenders due due once again to the supply and demand dynamics. And because there are fewer lenders servicing the market, the competition among lenders is much lower, resulting in less aggressive rates and terms being offered to applicants.

And when you take into account the impact that the recent recession has had on larger market lenders, the impact is more greatly magnified in the smaller markets with an even higher level of conservatism in place.

In several instances, specific commercial properties will garner to interest, or the interest that is identified may want considerably more equity to be retained in the property during the mortgage term. Small markets for commercial mortgages are for the most part buyers markets where the lenders are the buyers and maintain the power to do what’s in their best interest without worrying a great deal if at all about the local competition.

And when we speak of regional disparity, this can easily occur within different areas of a province and is not reserved only to areas outside of Toronto, Montreal, or Vancouver.

As a business owner, all this indicates that its going to be important to understand the commercial mortgage supply dynamics in your area or area of interest and not to assume whatever knowledge you have of a nearby market is going to transfer to your location of interest. Dealing with an experienced commercial broker is definitely one way to make sure you’re property financing assumptions are on track when you’re considering a commercial property transaction.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Commercial Mortgage Financing And Cash Flow

“How Commercial Mortgage Financing Can Be Influenced By Cash Flow”

Believe it or not, most banks and other institutional lenders do not consider themselves to be mortgage lenders, although the majority of the dollars they put out into the market every year have mortgage backed security and in many cases the use of funds was to secure a real estate acquisition or refinance an existing commercial property mortgage.

Institutional lenders consider themselves to be cash flow lenders with an emphasis on the cash a business generates and the strength of the overall balance sheet as primary borrowing factors. This can work positively and negatively in your favor depending on a given scenario.

If you have a strong real estate property, but cash flow that only marginally meets the banks debt serving requirements, you may still be able to secure a commercial property loan, but the loan amount as a percentage of the overall property value may only be in the 50% to 60% range.

In situations where the cash flow of the business is very strong, there are institutional lenders that will go as high as 100% financing against the commercial property value where part of the lending commitment is based on cash flow, not just real estate value. Of course a higher loan to value will likely come with a slightly higher interest rate, but when you’re already working with prime plus rates as a starting point, a slightly higher cost of funds is more than made up for with higher mortgage leverage.

Not all conventional lenders will consider higher ratio commercial mortgages, regardless of the cash flow, so the potential benefit of getting a larger mortgage will depend on which commercial lending program you’re applying to. Commercial mortgage financing in general typically will average a loan to market value ratio of around 65%. This is because income producing properties tend to have the established cash flow built into the property value already, providing little opportunity for a larger mortgage to be secured.

Determining where your commercial mortgage then best fits can involve quite a bit more than just a stated interest rate or repayment term. And the different types of commercial mortgage programs that you’re property could potentially be suited for can be hard to figure out unless you regularly spend time keeping track of what different lenders are doing with their programs and portfolios. One of the best ways to zero in on the most relevant commercial mortgage options is to work with an experienced Toronto mortgage broker with a track record of placing similar commercial property financing deals.

If you require commercial mortgage financing, or have some questions on the subject, please give me a call so I can assess your situation and get all your questions answered.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Broker Experience Can Be Key For Commercial Mortgage Deals

“An Experienced Mortgage Broker Can Make All The Difference When Seeking A Commercial Property Loan”

Even though technically, all mortgage brokers have the same basic qualifications and can assist with any type of mortgage, the different slices in the mortgage market are going to be hard to master collectively. As a result, the more focused a mortgage broker is on certain areas of the market, the more they will be in tune with active lenders, mortgage lender criteria, and the process for getting deals done.

This is very much the case with respect to commercial property mortgages where each loan request needs to be customized to the available lenders due to the wide diversity of commercial property that exists in the market.

An experienced commercial broker that has a focus and track record of success with commercial property loans is going to be more successful on average than a mortgage broker at large that has never completed or funded a commercial property financing request.

There are a number of key areas in the process where this will consistently hold true.

First, the commercial mortgage application process, on average, is significantly longer than a residential mortgage application process. So its important that you focus on commercial mortgage lenders that are able to complete the transaction in the time you have to work with. There are times when you’re business could be eligible for better deal, but due to the fact that cheaper forms of commercial financing can take longer to process applications, it may not be the best strategy to take if time is indeed a limiting factor to your purpose for financing.

Second, whether you have a short term time pressure or not, your time is still valuable and its easy to waste a significant amount of time and money focusing on lenders that have a low probability of being able to provide what you’re looking for. So its important to get focused quickly on the most relevant commercial mortgage lending sources to be most efficient with your mortgage sourcing efforts.

Third, the process for application for a commercial loan can vary among lenders so you need to make sure that you are able to meet the requirements of the lender prior to applying in order to once again get to the finish line sooner than later.

If you are in need of a commercial property loan, please give me a call so we can go over your requirements together and discuss different commercial mortgage strategies you can take.

Click Here To Speak Directly With Commercial Mortgage Broker Joe Walsh

Commercial Mortgage Rate And Leverage Tradeoffs

“Commercial Mortgage Financing Decisions Will Depend On Which of Your Financing Criteria Are Most Important”

Most business owners seeking a commercial mortgage will desire low interest rates and high loan to value ratios as real estate financing is typically one of the cheapest forms of business capital available and maximizing it can reduce the cost of capital in other areas of the business. Real estate also affords longer repayment terms which will also benefit cash flow compared to shorter amortizations on term loans.

So while low cost, high leverage may be desired, there is a trade off to be considered in most cases.

The cheaper sources of money will provide commercial mortgages in a range of 60% to 75% of the fair value of the property , with the average closer to 60%. The lower the interest rate, the lower the risk which is reflected in the loan to property value ratio. The cheaper forms of commercial property financing tend to be major banks which are also interested in your working capital requirements and in many cases will not be prepared to provide their most competitive rates for a commercial mortgage unless they are the senior lender for the business.

Term lenders that provide business financing for equipment and real estate or just real estate, have a slightly higher cost of capital than the major banks in most situations. In order to compete for your business, they will offer higher loan to value ratios that come with a slightly higher interest rate offer. If the business is strong enough financially, term lenders can provide up to 100% of the fair value of the property in the form of a commercial mortgage. The rationale is that the business balance sheet overall is still within an acceptable debt to equity ratio and the corporate and potential personal covenants are very strong to offset the high percentage of lending versus a property’s fair value. These high ratio commercial mortgages are more common among self occupied buildings where the cash flow assessment is more based on the strength of the business than any income producing tenants.

In the end, there can be a trade off between the lowest possible interest rate available and the highest amount of loan to value leverage available. A proper cash flow exercise and weighted cost of capital calculation should be able to determine which solution makes the most sense for your business.

If you need a commercial mortgage and would like to work through the different options available to you in the market place, I suggest that you give me a call so we can discuss you’re requirements in more detail.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Orangeville Commercial Mortgage

“We Provide Orangeville Commercial Mortgage Financing From Both Private And Institutional Mortgage Lenders”

Orangeville commercial mortgage financing starts with the type of property you want to finance and the use of the funds you’re after. For bank or institutional lenders, there is a significant focus on the cash flows generated by the property. If the property is self occupied, then the financial statements of the business will need to be provided for the last three completed fiscal periods. If the property has tenants, then a detailed rent roll will need to be made available with the application to not only show who is paying rent, but the related terms and ongoing occupancy commitment.

With commercial properties that area rented, institutional deals will be very particular as to the quality of the tenants as well as the length of the leases in place. For the cheaper commercial mortgage interest rates, its going to be important to have the core tenants under long term lease agreements with five plus years remaining. With self occupied situations, the financial statements are going to need to be able to show a cash flow coverage ratio of at least 1.25 times the total debt service for the borrowing entity.

For each type of property, commercial lenders will have varying degrees of interest depending on how weighted their portfolio is at any given time towards a certain industry segment. What this can mean is that at certain times it can be hard to determine what lenders will provide commercial property financing on specific properties, regardless of the financial strength of the underlying business or rent roll.

For private mortgage lenders, the actual market value and marketability of the property is going to take center stage in the lending decision along with the planned strategy to repay the loan at the end of the loan term, which in most cases is one or two years. That being said, there are private mortgage lenders that will provide Orangeville commercial property loans for longer period of time and even with amortized repayment schedules as compared to the more typical interest only payment requirements.

If you need an Orangeville commercial mortgage, or just want to better understand your options, please give me a call so I can go over your requirements with you and provide potential commercial mortgage solutions for your consideration.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Barrie Commercial Mortgage

“Let Us Help You With Your Barrie Commercial Mortgage Requirements”

These days, a Barrie commercial mortgage can take some time to get into place, especially when you’re working with bank or institutional commercial mortgage lenders.

Not that commercial mortgage financing has even been very fast in getting completed, but since the start of the recent recession, things have gotten even slower. Banks and other institutional lenders are being more conservative in their approach to lend money these days, taking their time to review all available information and asking for additional third party verifications in many cases.

Add to this the higher standards coming into place with environmental liability regulations and you end up with a process that can seem like a turtle derby at times.

If you’re starting the commercial financing process today and want to get something done in 30 days, unless you’re refinancing or renewing your mortgage through your existing commercial lender, the only real option you have is to locate and secure a private mortgage to meet your requirement. Private mortgages will also require considerably more information on commercial mortgages compared to residential, but for deals under $2,000,000 there are a number of private mortgage lenders that can get the deal assessed and funded in a one month time period provided all the required information is available.

The biggest challenge with looking for a Barrie commercial mortgage, or a commercial property loan in any location, is spending too much time with commercial mortgage lenders that are either not able to complete the transaction or are not motivated enough to do so at the time of your application for whatever reason. Its easy to invest several weeks in a commercial mortgage application process before you realize that the process is going no where and you’re left to start all over again, not really knowing what actually went wrong.

The best way to increase the chances of getting the commercial mortgage you need in the time you have to work with is to work with an experienced commercial mortgage broker that provides services in the Barrie and surrounding area. A seasoned mortgage broker will help you navigate the market quickly zero in on the most relevant sources of commercial property financing for you’re particular property and financing requirements.

If you need a Barrie commercial mortgage, I suggest that you give me a call so we can go over your scenario together and discuss different commercial mortgage financing strategies that can work for your business.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Commercial Mortgage Market

“The Commercial Mortgage Market in Newmarket And The Rest of The Greater Toronto Area Stays In Flux”

Newmarket commercial mortgage financing like everywhere else in the GTA, continues to be a work in progress with respect to understanding the dynamics of the market at any given point in time.

Since the beginning of the recession two years ago (or so), the commercial mortgage market continues to be a changing landscape with institutional lenders going and coming into the market and private lenders mostly coming in versus heading for higher ground.

The proverbial waves from recessionary impacts are still hitting the financial beaches as lenders continue to closely monitor their portfolios to see what further loss accounts they may still expect to see from borrowers that will still not make it through to the other side of the economic downturn.

The end result continues to find institutional lenders being more selective in the deals they take on, taking more time to evaluate and fund each deal as well, and private lenders entering the fray in record numbers as the quality of the private mortgage deals available increase.

For the Newmarket commercial mortgage options, nothing has really changed in terms of what’s available to a given business or borrower. The big challenge right now is trying to determine which lender is going to 1) be able to fund your requirements today; and 2) is the best fit for your business requirements.

One thing is clear however is that you need to start the process of finding the right commercial property loan sooner and if time is at all a factor, then private mortgage funding options may need to be considered over institutional in order to meet your deadlines, whether they be self imposed or forced upon you. Bank or institutional deals are taking longer to complete on average than the pre recessionary period and both the timing of completion and outcome can be very difficult to predict.

One of the best ways to get a Newmarket commercial mortgage in place is to work with an experienced commercial mortgage broker who can help you get working with the most relevant lenders right away, saving both time and money in the process.

If you need a Newmarket commercial mortgage, I recommend that you give me a call so we can go over your requirements together and discuss different commercial mortgage options available in the market place today.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Dundas Commercial Mortgage

“Call Us Today For Your Dundas Commercial Mortgage Options”

In order to secure a Dundas commercial mortgage, the real estate property being financed needs to be properly matched up with a commercial property lender  that will be interested in the property and has the lending programs to meet the needs of the business borrower.

The first step in the process for the property owner to develop a solid understanding of what will be available to them in the market place in relationship to their expectations. Sometimes the borrower expectations do not match up with the market which can result in a lot of time wasted chasing money that doesn’t exist or is unlikely to exist or become available in the time you have to work with.

The second step is to focus in on commercial property lenders that are not only interested in the specific property type and application, but have the programs and mortgage options that are most congruent with what the property owner is looking for. For instance, if a fast mortgage closing is required on a commercial property where a mortgage needs to be in place in a matter of days, then a private  lender is going to be more relevant in that situation than an institutional lender due to the time its going to take to get a bank mortgage in place.

The third step is to make sure that the application package to put forward to a targeted lender will proactively answer most of their questions so that the application process and progress as fast as possible towards a positive result. Too often the property owner only wants to provide all the pluses of the property at the outset with the thinking that once a lender is interested then the rest of the information can be disclosed and explained if necessary. The challenge with this way of thinking is that with an incomplete application that looks positive on the surface, most lenders will be interested and will want to learn more. While this may sound appealing on the surface, it actually become a big time waster as one by one the lenders will fall off as more complete information is provided. If you’re focusing in on the right lender targets in the first place, then solid and complete information is going to get a positive result faster than trying to only start with the positive attributes of the application.

If you need a dundas commercial mortgage, I suggest that you give me a call so I can quickly review your requirements and provide relevant commercial mortgage financing options for your consideration.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Toronto Multi Residential Mortgage

“Need Help With Toronto Multi Residential Mortgage Financing?”

Toronto multi residential mortgage financing is effectively a commercial property mortgage for any residential development with more than 4 units.

Because this falls into the realm of commercial property financing, there is a significant increase in the amount of information the relevant mortgage lenders are going to require to assess an application for financing.

Typically, residential mortgage financing has a much more straightforward process due to the lower mortgage funding being requested in most situations and the greater ease of assessing real estate value and resale ability on smaller property holdings.

With commercial property financing, there is potentially a higher level of risk to the mortgage lender, so to get comfortable with any particular financing application, a commercial lender is going to get into more detail with respect to any potential risk to both the borrowers ability to repay the requested mortgage and to the value of the security over time.

A Toronto Multi Residential mortgage from an institutional lender will require a commercial property appraisal from an AACI appraiser, a recently completed environmental assessment report from an acceptable environmental consulting firm, last three years completed financial statements for the owning entity, an updated rent roll, and so on.

Commercial mortgage financing is available for both multi res acquisitions as well as the refinancing of existing commercial property mortgages.

Because of the more rigorous requirements from bank or institutional mortgage lenders for this type of real estate property lending, private mortgage financing can also be an option for situations where not all the mortgage terms and conditions of a primary or secondary bank can’t be met.

Private mortgages are typically short term in nature due to their higher cost of financing. That being said, there are private mortgage lenders that will stay invested in a commercial mortgage for 5 to 10 years.

For situations where a faster closing or quick refinancing is required, a private loan  option may be the best available option. And even with a higher cost of borrowing, if the private funding source saves a purchase from falling through or avoids certain other costs from incurring to the property owner, then the additional interest costs may quickly become trivial in the big scheme of things.

If you require a Toronto multi residential mortgage, I suggest that you give me a call so we can go over your situation in detail and discuss relevant commercial mortgage financing options that are available to you in the market.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

Niagara Falls Commercial Property Loan

“Niagara Falls Commercial Mortgage Financing For Single and Multi Use Properties”

Niagara commercial mortgages can be arranged for industrial, mixed use, multi residential over 5 units, commercial, and rental property types.

Properties like multi residential, rental, retirement homes, and licensed care facilities can qualify for an insured mortgage under the Canada Mortgage and Housing Corporation (CMHC) programs. Maximum loan to value on these types of properties from institutional lenders can only be realized through an insured mortgage program.

Bank or institutional lenders will typically require an AACI appraisal, a recently completed environmental report, and the last three years of historical financial statements along with a rent roll if the property is rented out.

Commercial mortgages through private mortgage lenders are becoming more common in active market areas where borrowers may not have the time or the ability to fully qualify for institutional mortgage rates.

The major challenge with locating and securing a Niagara commercial mortgage for any given project is lining up with the right lender and commercial property financing program that best suits your requirements at a given point in time.

This task is easier said than done for a number of reasons. First, commercial mortgage lenders all tend to have their own areas of interest with respect to commercial property with certain properties getting more serious consideration than others. This can be difficult to impossible to tell when looking in from the street at virtually any mortgage lender.

Second, the commercial mortgage portfolio of any given lender is constantly changing causing lenders to continually change their interest levels in different properties in order to maintain the balance they seek in their portfolio across property types.

Third, the detailed commercial mortgage requirements for certain programs may not be apparent until after considerable time and cost have been expended in the application process.

These are just some of the reasons why it makes sense to work with an experienced commercial broker that has the market knowledge, lender relationships, and mortgage expertise to get you working with the most relevant lenders sooner than later.

If you require a Niagara Falls commercial mortgage, please give me a call so we can discuss your requirements as well as potential commercial property financing solutions that will fit with what you’re trying to accomplish. Regardless if your need is for purchase financing, mortgage refinance, debt consolidation, or construction, I recommend you give me a call.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh

St. Catharines Commercial Mortgage

“St. Catharines Commercial Mortgage Financing Available From Bank And Private Lending Sources”

St. Catharines commercial mortgage financing from an institutional source will have a strong cash flow requirement to support mortgage repayment. The most basic requirement of cheaper forms of money is the presence of historically proven and documented cash flow. While the underlying security value is also going to be important, cash flow is the key ingredient necessary for any bank or conventional commercial property loan.

Private mortgage lenders, while also concerned with cash flow, are going to have their primary focus on the market value and marketability of the real estate. Private lenders are most concerned with the exit strategy in place to pay them out at the end of the loan or commercial loan term.

While cash flow and security are by far and away the major criteria for commercial lenders, there can be a host of other factors that can weigh into a a particular application for mortgage financing for a commercial property.

Because commercial real estate covers such a broad category of property types, most commercial mortgages end up being a customized financing application with the mortgage lender trying to fit the subject property into their specific lending box which tends to be very rigid and inflexible.

St. Catharine commercial property lenders will also have a varying interest in property types over time as the work to manage risk in their overall portfolio. Too much concentration in any one industry or property type in a location will likely see the specific lender show less interest in a property they may have been eager to finance months earlier.

With all the different types of lenders in the Ontario market, each with their own commercial mortgage financing programs and shifting requirements, it can be rather difficult for a business owner or property owner to figure out what commercial mortgage lender will be interested in financing their requirements and who will potentially provide the best available deal at a given point in time.

One of the best ways to successfully navigate the market is by utilizing the services of an experienced commercial mortgage broker who stays on top of changes in the market and individual lender financing practices.

If you need a St. Catharines commercial mortgage, please give me a call so we can go over your situation together and discuss relevant commercial property financing options that can meet your requirements.

Click Here To Speak With Commercial Mortgage Broker Joe Walsh