The keys to securing a commercial mortgage are not foreign to a seasoned mortgage broker. A potential client once told me, “You cannot get a commercial mortgage outside of Toronto.. lenders in Toronto do not think that there is anything of value outside of their area!” In some ways, he is right, but not in the fact that Toronto won’t lend outside of their area. They will lend to Chatham-Kent, Windsor, Essex County, Sarnia, Lambton County, and more. You just need to know the type of commercial lending they do, and what they are looking for.
Commercial Mortgage Types
There are many types of commercial mortgages.
- Long-term fixed–interest commercial mortgage. A standard commercial real estate loan from a bank or lender works similarly to a home mortgage but with broader uses and shorter terms. …
- Interest-only payment loan. …
- Refinance loan. …
- Hard money loan. …
- Bridge loan. …
- Construction loan. …
- Blanket loan, and so on.
Securing a Commercial Mortgage
If a lender is more comfortable with a “refinance” loan, they may not look at a “construction” loan, so you will probably end up with a “no” and vice versa. The challenge is to match the type of loan you are looking for to the right lender.
Over the years, I’ve obtained many commercial loans for clients in Chatham-Kent, Essex County, Windsor, Lambton County, Sarnia, and even London. This is by knowing which institution was looking for which type of loan. No matter what the amount, there is almost always a financial solution. It’s a matter of knowing who wants what!
Let’s look at Asset versus Repayment, or for some, appraised value versus revenue. You will be surprised at what banks and institutions look at. This is where the famous sentence comes from, “but I only wanted an LTV (loan to value) of 50%, why was I declined”?
Contact me to help you obtain the commercial mortgage you need to succeed.
