Commercial mortgage financing and commercial loans in Ontario are specialized fields of financing.
If you operate a Corporation, you would hire a Chartered Accountant to file your tax returns; and not a general accountant.
In that same vein, if you need to apply for commercial mortgage financing or a commercial loan, it is best that you deal with a Mortgage broker who specializes in ? target=?_self? title=?commercial financing?>Commercial Mortgage financing. If you are a Mortgage Agent or Broker who specializes in residential mortgage financing, you too can benefit from the guidance of a Mortgage Broker who specializes in Commercial Mortgage Financing.
To be approved for a Commercial mortgage, the lender will require a lot of information to process the application. You will need to: ? Provide an explanation of what you are seeking to accomplish through the Commercial Financing ? Provide the desired loan amount ? Indicate if you are requesting debt, equity, or both ? Provide a complete property description that includes the location, size, current entitlement status ? Provide status of approvals including correspondence ? Indicate the amount of funds that are actually needed for the project and the percentage of the project these funds represent ? Indicate the amount the borrower is going to invest in this project
If the project involves real estate development, you will be required to provide: ? A list of the hard and soft costs for all phases (provide a spread sheet with a detailed construction/servicing budget) ? The future value upon completion ? Project time frame ? Rate of absorption ? Total build out
If there is a retail or office component to the application, you will also have to indicate pre-leasing information and provide a rent roll. Leases will be required later.
If the Commercial Mortgage is required to purchase a commercial property you will also need to know the purchase price, down Payment amount, seller carry, contract/REP- C expiry date.
You will also need to provide: ? Use of Funds ? (Or provide a spreadsheet) ? Projected cash flow noting sales and estimated draw down on construction facility ? Pro ? Forma Income statement ? An explanation of the business and/or borrower?s financial history for the past 3 years ? Previous operating history, if applicable and a list recent projects ? A P&L for the business if one is available ? Personal financials for the borrower
Finally, you will also have to indicate: ? Whom is signing the loan ? Any critical dates that must be met for this project ? If there is an appraisal. If yes, the date of the appraised value. If there is no appraisal how was the value determined? ? If a 3rd party independent feasibility study or appraisal was completed ? If other properties can be used as collateral. If so, what is the type of property, value and are there any existing liens? ? Your credit status. Do you know your credit score?
It is clear that obtaining approval for commercial financing in Ontario is quite an undertaking . Seek the guidance and representation of a professional who specializes in this field.
Whether you are a new home buyer, realtor, or mortgage broker seeking assistance on a challenging mortgage request, it is our dedication to creative underwriting, quality presentation; ultimately providing creative mortgage solutions even in the toughest situations which make us stand out. With over 17 years of experience we will quickly give you the confidence that we will deliver results you can close on.
For more information please visit www.firstequity.ca or call David Mandel 416 440 1224 ext. 24.
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