In commercial lending the decision rests on whether the building can service its own debt. Your personal income becomes secondary, and the review takes longer.
The rent roll, the building’s financial statements, verifiable expenses and your ownership structure. The lender calculates whether net income covers the payment with enough margin.
Present the risk clearly
The lender needs to understand property use, repayment capacity, leases, expenses and business plan. An incomplete file often slows the negotiation.
Compare structure, term and guarantees
Beyond the rate: the amortization period, any personal guarantees required, and the renewal clauses. A personal guarantee on a corporately held building changes your exposure entirely.
Documents to gather
What the lender will ask for.
Financial statements
Commercial leases
Property use
Down payment
Possible guarantees
Repayment plan
Frequently asked
How much down payment for a commercial property?+
Considerably more than residential, often 25% or more, depending on the asset type and the quality of the leases. A building with stable tenants on long leases earns better terms than one with vacant space.
Current rates
Today’s rates, read with their conditions.
These rates are indicative. The one you get depends on your file, the type of mortgage (insured or not) and the lender, and the penalty attached to it matters as much as the number.
Buying, renewing, refinancing or an unusual situation: describe where you are at, even if it is still vague. Mathieu replies with the next steps and the documents to gather.
