Commercial Mortgage Ontario

Commercial mortgages are provided to people who want to purchase or refinance commercial real estate, such as factories, retail spaces, or offices. Commercial real estate lending involves property built on land with a commercial zoning designation.

An exception is a multifamily property (rental apartment). These buildings can be on mixed-use or residential zoning but are underwritten using commercial financing.

Commercial mortgages are like residential mortgages in that you borrow money secured against property. They provide an excellent solution for investment property portfolios or to expand a business.

Assessment on a commercial mortgage is based on the property and owner’s credit history. Evaluating the business’s creditworthiness is complex, and lenders must assess risk with individual property. Evaluating the person’s credit standing is more complicated with commercial mortgages. Therefore, the amounts and rates are higher because of larger risks when compared to residential mortgages.

Multi-Family Residential

These mortgages are for buildings with over five rental units or those wanting to purchase additional property. They provide the advantages of flexible, tailored financing for corporations and investors. By investing in capital improvements, owners can expand on existing real estate, diversify their holdings, or maximize income potential.

Storefront with Apartments for Residential Commercial (Mixed) Individuals

Mixed-use properties work with asset managers and developers by providing strategic capital and empowering advice. Mixed-use mortgages are for developments that have a storefront and residential (like apartments) components.

Commercial Plaza Mortgages

This mortgage involves financing strip malls, shopping centres, retail plazas, and medical centres. These properties provide long-term tenancy agreements and sustainable income.

Retail and Office Mortgages

These properties range from clothing boutiques to convenience stores. They are ideal for grocery, standalone, special interest/boutique, and other retail properties.

Industrial and Factory Mortgages

Industrial mortgages deal with larger properties such as warehouses, factories, logistics, manufacturing plants, storage/logistics facilities, workshops, plants, and auto shops.

These mortgages cater to companies operating in massive spaces that fall into the manufacturing or industrial sector.

Farmland Mortgages

Farming provides a backbone to our Canadian economy. Ensuring the financial freedom of agriculture benefits everyone. We assist those who want to buy a new or existing farm, want to expand on their land, manage daily operations, or refinance their current debt.

Construction Projects

Construction projects mortgage finances for constructing buildings. Loans are incrementally advanced during a building phase and as construction progresses. Generally, mortgages require interest payments while doing construction. When the building of the property is finished, the loan comes due.

These loans begin with raw land.

Local Retail Stores

Local retail mortgages provide refinancing, purchasing, or building shopping centres and retail properties. These include regional/local malls, big box stores, grocery stores, shadow-anchored, standalone, neighbourhood centres, and multi- and single-tenant properties.

Buildings and Apartments

This commercial loan is for apartment complexes or buildings. These include:

• Retirement housing


• Standard rental housing


• Supportive housing


• Single room occupancy


• Student housing

Malls

This financing is for retail properties like strip plazas, neighbourhood shopping centres, mixed-use plazas, strip plazas, mini-malls, big box outlets, and restaurant pads

Restaurants and Hotel Ventures

These loans involve an independent operator or franchisee who buys, owns, or rents a building. Some institutions offer franchise financing, while others invest in long-term tenants or owner-occupants. Borrowers must have a stable financial situation supported by reliable banking statements. They must also have someone with management experience.

Land Servicing and Development

A land servicing and development loan permits developers to receive capital to work on their projects. Financing options involve secured debt financing and unsecured equity. It can include subdivisions and raw land agreements.

Vacant and Raw Land

Raw land loans are for empty lots with no utilities or roads. Sales prices for raw land are lower than those of improved land. However, raw land financing is only possible with detailed budgets and construction plans. Approval requires good credit scores and large down payments.