Commercial Mortgages By Boychuk Mortgage Group

A commercial mortgage is a type of investment property mortgage taken out on commercial real estate as opposed to residential, with the property as collateral. The borrower is usually a company or business as opposed to an individual. The rates are highly dependent on the specific mortgage, property, and borrower conditions. Additionally, assessing credit history is more complicated with this type of mortgage.

As an expert in the field, trusted mortgage broker Boychuk Mortgage Group wants to help you understand more about what a commercial mortgage entails. There are a number of properties that can be classified as commercial properties. It is important to identify exactly what type of property you are looking to finance. Due to the size and complexity of commercial mortgages and the difficulty of selling commercial properties, the specific terms of a commercial mortgage will differ from case to case. However, generally speaking, most commercial mortgages for developed properties like multi-residential, retail, office, and hospitality share the following terms:

Fixed, Variable, Or Combined Rate Types

Loan-to-value (LTV): Up to 85%

Term length: One to twenty-five years

Amortization: Up to twenty-five years, (CMHC: Up to forty years)

Commercial Mortgage Broker

A commercial mortgage broker in Canada can help you find the best mortgage for your needs. They can also assist you with the complicated process of obtaining a mortgage. They work with large banks, trust companies, and credit unions in Canada to find the best deal for you. With their experience in the mortgage industry, they can help you quickly find a better mortgage with lower interest rates than you could individually.

Commercial Mortgage Lenders

1. First National Commercial Mortgages

First National offers commercial mortgages for purchases, new constructions, and refinancing/second mortgages. First National classifies its mortgages into two main offerings, namely First Mortgage Financing and Top-up Financing and Second Mortgages.

A. First Mortgage

Loan amount: $2.5M to $10M

Loan-to-value (LTV): Up to 75%

Term length: Up to five Years

Amortization: Up to twenty-five years

Eligible property classes: Multi-family, retail/plaza, office, mixed-use, industrial, and hospitality

Eligible mortgage type: First mortgage only

Eligible regions: Major population centres

B. Top-up Financing and Second Mortgages

Loan amount: $1M to $10M

Loan-to-value (LTV): Up to 85%

Term length: Up to five years

Amortization: Up to twenty-five years (interest-only option available)

Eligible property classes: Top-up: Multi-family, retirement homes. Second mortgage: Retail/plaza, office, mixed-use, industrial, hospitality

Eligible Mortgage Type: Second mortgage, top-up

Eligible Regions: Major population centres

2. MCAP Commercial Mortgages

MCAP offers commercial mortgages for new purchases, refinancing, and top-up/second mortgages for loan terms of one-five years and amortization of up to twenty-five years. They also offer specialized CMHC mortgages for multi-family and retirement homes with amortization of up to forty years. MCAP also offers conventional commercial mortgage loans to its clients for a variety of different property types.

A. CMHC Insured

Loan amount: $2.0M to $100M

Loan-to-value (LTV): Up to 85%

Term length: Five to ten years

Amortization: Up to forty years (Premium charged for > twenty-five years)

Eligible property classes: First mortgage, second mortgage, pari passu mortgages, top-ups

Eligible mortgage type: Multi-family. retirement homes, student housing, social housing, affordable housing projects

Eligible regions: BC, AB, SK, MB, ON, QC, NS, NB

B. Conventional First Mortgage

Loan amount: $2.5M to $10M

Loan-to-value (LTV): Up to 75%

Term length: One to five years

Amortization: Up to twenty-five years

Eligible property classes: First mortgage only

Eligible mortgage type: Multi-family, retail/plaza, office, mixed-use, industrial, hospitality

Eligible regions: Major population centres