
COMMERCIAL MORTGAGE
A commercial mortgage is a loan taken out on commercial real estate (as opposed to residential) with the property as collateral. The borrower is generally a company or business as opposed to an individual and the business may be either a partnership, limited company or incorporated. At Ontario Mortgage Group, we help you secure funding according to your business, financial plan and financial goals.
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WHAT DO YOU NEED TO KNOW TO QUALIFY?
To secure a Commercial Mortgage, there are specific criteria that you will have to satisfy. The bar is set quite high as the value of loans is considerably higher.
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Debt service coverage ratio - This is the main criteria that lenders will look at and is essentially the ratio of cash available to the required loan payments. Most lenders will apply a loan-to-value ratio and will expect you to invest some of your own money into the purchase to balance the odds.
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Credit History - Most lenders will require a good personal credit score as well as evidence that your business is creditworthy. There are lenders that may accept applicants with a less-than-perfect credit history, but they are few.
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Current business situation - If your business is up and running, commercial lenders expect your business to be profitable and steady. You may need to provide your business plan and financial projections to ensure that you will be able to make your payments on time.
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Type of business - The terms of a commercial mortgage are dependent on the type of business as well as the property you want to purchase. This can be quite a complex area so it is advisable to acquire a specialist, either a solicitor or chartered surveyor, to advise you.
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Down payment - A higher down payment is expected of a commercial property. A typical down payment on a mixed property falls between 20- 35%. A pure commercial property is typically higher, near 50%. Your risk profile directly determines the down payment that is required of you.
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THE COMMERCIAL DIVISIONS WE SPECIALIZE IN
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Ontario Mortgage Group, a team with Mortgage Alliance, specializes in the following Commercial Divisions;
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Commercial Plaza Mortgages
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Office Mortgages
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Retail Mortgages
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Industrial Mortgages
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Multi-Family Residential Buildings
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Land & Development Financing
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Hotel & Motel Mortgages
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And much more!
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FOR MORE INFORMATION, CONTACT US USING THE FORM BELOW
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WHY CHOOSE ONTARIO MORTGAGE GROUP?
Fast
Approvals
We provide you with quick turnaround time with no time wasted.
Low
Rates
We have access to the lowest rates as we work closely with our lenders.
Bad
Credit
Poor Credit?
Bad Credit?
No Credit?
We will take care of you.
24/7/365
Service
We work around the clock to provide our clients with complete assistance.