Mortgage solution
Commercial mortgage
In commercial lending, the question is whether the building can service its own debt. Your personal income comes second, and the review takes longer.
Commercial files need more than a property
The rent roll, the building’s financial statements, expenses that can be verified and your ownership structure. From those, the lender works out whether net income covers the payment with enough margin.
Present the risk clearly
The lender has to understand how the property is used, whether it can repay, the leases, the expenses and the business plan. An incomplete file usually slows the negotiation.
Compare structure, term and guarantees
Look past the rate to the amortization period, any personal guarantee required and the renewal clauses. A personal guarantee on a building held by a corporation 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?
A good deal more than residential, often 25% or more, depending on the type of asset and the quality of the leases. A building with stable tenants on long leases gets better terms than one with vacant space.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Have your file reviewed before you commit.
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Contact
Tell Mathieu about your project
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
- Your request goes directly to Mathieu
- Across Quebec, in French and English
- No fee on most residential files