For Toronto commercial mortgage refinance situations, there are a number of things you need to consider, depending on the specifics of your mortgage refinancing requirements.
First of all, are you able to renew your mortgage with your existing lender or are you forced to refinance through a different lender?
In situations where you’re are heading into a mortgage renewal period where the term of your existing commercial mortgage is coming due, the most important thing you can focus on is starting the process of renewing or seeking refinancing options as soon as possible, even 6 months or more before the current mortgage term will expire.
The mortgage process followed by bank and institutional lenders can take a considerable amount of time so the sooner you start assessing your available options and potentially applying with other lenders, the better.
Its not unusual for a commercial mortgage refinance process to take sixty days or more and if you have not allowed enough time to explore your options, you may end up being resigned with the offering of your current lender.
While there may be nothing wrong with renewing your current commercial mortgage for a longer term, there is no incentive for your existing lender to offer you premium rates if there is no real treat of you refinancing with someone else. So starting early and exploring your more viable options is going to be important to getting the best result.
If you are in a situation where you are forced into a mortgage refinance scenario, then time may not be something that’s on your side.
If this is the case, you want to make sure that you get zeroed in on the most relevant commercial mortgage lenders as quickly as possible so you’re not wasting precious time in your mortgage refinancing process.
One of the watch outs with commercial mortgage applications is casting your net too wide by working with too many lenders or mortgage brokers. Because the process takes a considerable period of time, lenders are less open to working through an application if they know that you have applied to several other commercial lenders.
Excessive shopping can kill potentially otherwise viable options if a commercial mortgage lender believes they are just one of many looking at your deal.
Another consideration when time is short is to look at private mortgage options for your commercial property.
A private commercial mortgage refinance can be accomplished in most cases much faster than through a bank or institutional lender. If you have less than thirty days to complete a commercial mortgage refinancing, a private mortgage lender may be the best short term option.
Then, once financing is secured, you can take your time and go through a more exhaustive process to locate and secure the best possible deal available to you from a bank or institutional commercial mortgage lender.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel