Commercial Mortgage Financing
A commercial mortgage is a loan made available to the borrower using commercial real estate as collateral for security of repayment. Commercial mortgage can be complex and complicated to arrange. It is different than a business loan where real estate is not taken as collateral. Similarly it’s not a leasing arrangement or an operating line of credit so it’s not suitable in all situations. Unfortunately, commercial mortgage financing can be a long, arduous ordeal filled with many pitfalls.
There are two types of properties for commercial mortgages:
- Owner occupied commercial mortgage – In this case owner’s business occupies 51% or more of the total building space.
- Investment commercial mortgage – In this case owner’s business occupies 0% or less than 50% of total building space.
Commercial mortgage rates and fees vary depending on the lender, property and borrower.
General qualification factors for commercial lending are a combination of the following:
- Property Type
- Debt Service Coverage Ratio (DSCR)
- Cash flow in case of income property
- Down payment / equity
- Credit rating
- Property Environmental reports
- Property Appraisals
Funding is available for all types of Industrial, Commercial and Investment properties and some of the types are as under:
- Multi Use Buildings
- Owner Occupied Building
- Apartment Buildings
- Income Properties
- Land Development
- Industrial Properties
- Office Buildings
- Construction Financing
- Church/ Place of Worship
- Nursing & Retirement Facilities
- Raw Land
If you need a commercial mortgage let us know and we will work with you to get what right for your need. We offer professional mortgage service and quick response.
We can help. Learn more online or call us now (416.863.1222)
Commercial Financing Articles
- About Commercial Mortgage Financing
- Commercial Mortgage Financing
- Commercial Mortgage Loan
- Four Key Financial Ratios for Commercial Financing