As a business owner or investor, you may be on the lookout for a property that can house your company. Or, you may be looking for a larger residential property you can rent out to tenants. In order to secure funding for buildings of this nature, you will need a commercial mortgage.
A commercial mortgage is a loan that is to be used specifically to fund commercial real estate. The borrower in the case of a commercial mortgage is a company or business instead of a couple or individual, like is the case in a residential mortgage.
Properties that have a multi-purpose function are the only properties that are considered commercial. These properties include office buildings, retail spaces, and multi-residential properties with 5 or more units. Also, the property you wish to purchase must be located in an active resale or rental market. Lenders aren’t too keen on providing funding for properties in the middle of an industrial wasteland if there’s no chance they can’t be resold later on.
Commercial mortgages require certain criteria to be met such as:
Unlike their traditional counterparts that can close in approximately 90 days, commercial mortgages can take anywhere from two months to a full year. In order to get the ball rolling, meet with a broker to secure funding for your commercial building. Apply now so a qualified mortgage broker can find you the perfect mortgage package sooner rather than later.Back
Canada’s mortgage website
Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).
We All Need a Mortgage
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