Commercial Property Refinancing

“Commercial Property Refinancing In Toronto And The Greater Toronto Area”

commercial property refinancing toronto

When it comes to the refinancing of a commercial property, most people think that the lending decision is primarily going to be related to the value of the building.

And while real estate security value is certainly a primary criteria for refinancing a commercial mortgage, its not going to be the only aspect of the deal that will be under consideration.

The reality this there can be a multitude of items related to the business and a commercial lender can focus in on when reviewing a commercial mortgage refinancing application and so it becomes important for a consultant or broker providing financing assistance to fully understand the deal so that a highly relevant fit can be made between borrower and lender.

Get the Flash Player to see this content.

For instance , other than the value of the real estate, the first thing a lender is going to review in a refinancing application is what the use of funds is for.  If refinancing is related at all to business distress, the financing options will likely need to become more focused on sub prime and private mortgage options.  If the use of funds is for growth of an already profitable company, then there will be more bank or conventional “A” mortgage options available to the applicant.

In situations where the deal falls out of “A” lending criteria, there can still be a wide range of options available, especially in the Toronto and Greater Toronto Area.

In these subprime and private mortgage lending situations the objectives can also be varied by the situation which will also impact the lender target.  For instance, does the refinancing require any additional capital or do we strictly need to refinance the outstanding balance of the existing lender?  Are we trying to refinance more than one mortgage?  Is the existing mortgage up to date or are we going to be asked to financed accrued interest, arrears, and potentially property taxes?  How much time will the new mortgage be required for and what will be the exit strategy to repay it?

The point here is that specific requirements of the refinancing request and the specific financial and credit standing of the business that owns the commercial property will dictate the available lending options in addition to the real estate value and the projected loan to value that will result.

If you’re looking to refinance a commercial mortgage in Toronto or the Greater Toronto Area, I suggest that you give me a call so we can discuss in detail the requirements of the request as well as the existing financial profile of the business so we can quickly determine the most relevant commercial property financing options available to you.

Click Here To Speak Directly To Toronto Mortgage Broker Joe Walsh



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