Commercial Property Loan
The Sources Of “A” Credit Commercial Property Loan Will Vary By
Property Type And Use
If you have an “A” credit financing scenario for a commercial property, then its likely that a low cost commercial property loan can be secured.
But depending on the property and its use, there can be considerable variation among lenders in terms of interest in the deal and rates and terms that can be offered.
Larger income producing properties will attract the most attention from main stream lenders, so there is likely not going to be a challenge to locate a market competitive deal.
Where it can be a challenge is with smaller value properties with more specialized uses.
Commercial properties such as gas stations, self storage facilities, and so on can have an excellent financing profile, but will not be of interest to all lenders at all times in all areas.
This is where it can be some work to get a commercial property loan in place that provides the rate and terms you’re looking for.
Timing can be a significant factor in this regard as well with lenders coming in and out of the market according to the strength and weighting of their portfolio towards different types of properties.
For instance, its not uncommon to see some of the major banks run hot and cold for lending on specific property types according to their own needs more so than the market.
One of the keys to locating and securing a commercial property loan, especially for a more niche type of real estate, is to 1) start early, and 2) get some assistance from a financing specialist.
Considerable time can be wasted knocking on the wrong doors, leaving you scrambling to come up with any type of option that will work with the time you have available.
And as I mentioned earlier, the offerings that can exist in the market can vary considerably from one “A” lender to another, so its important to be working with enough market intelligence to be able to zero in on the options that are most relevant to you situation and requirements, at the time that you will require the funding.
Every commercial property loan will be secured by mortgage security as well, so you will have to consider the type of mortgage agreements offered by relevant lenders as well as the type of mortgage registration and subordinate mortgage restrictions that may come with an approval for funding.
While in general the mortgage market as a whole has more options for commercial financing now that in the recent recessionary period starting in 2008, more options can also create more complexity in understanding the different options available to you.
This is still another reason why working with an experienced mortgage broker can be beneficial to ending up with a commercial property loan that meets your requirements now and into the future.
If you have a commercial property financing need right now, or are planning ahead for a future requirement, I suggest that you give me a call so we can quickly go through your situation together and discuss some of the different options that are likely going to be available to you in the “A” credit market.
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About the Author Joe Walsh
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