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.
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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