A building with a shop on the ground floor leaves residential lending with few lenders. How much commercial space is tolerated, and the effect on your down payment.
Lenders approve the building as much as the buyer. What kind of building it is, what shape it is in and how it is used can decide who takes the file, sometimes before your income is looked at.
Show the building clearly
Pull together whatever describes it: leases if there are any, tax bills, condition reports and title records. A well-documented building moves faster than one where the lender has to guess.
Budget for more than the payment
The mortgage payment is only part of the cost. Municipal and school taxes, insurance, heating and upkeep get added, and many lenders like to see a reserve in your account after closing.
Documents to gather
What the lender will ask for.
Use of the property
Building type
Appraisal and comparables
Income or leases
Down payment or equity
Lenders that qualify
Frequently asked
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add the rent roll and the building’s financial statements. Get everything together before making an offer. That is how you keep a short financing window realistic.
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.
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.
