Commercial Mortgages are a different ball game when compared to residential mortgage lending. Lender requirements are substantially larger with commercial Mortgage lending, appraisals cost more and the entire file is more complicated. It is in your best interest to ensure the mortgage broker you are dealing with is experience in Commercial Mortgage lending before you proceed further.
We specialize in Alternative or private Commercial Mortgage lending instead of targeting the Commercial Mortgage “A” clients.
Alternative or Private Lending
Generally, the interest rates for commercial mortgages are 0.75% to 1.5% higher than residential mortgages with “A” lenders or private lending. If we feel the client get approved with a big bank then we will actually tell them that proceeding with our firm is not in their best interest. Unlike residential mortgage lending, as a mortgage broker we must charge a fee when lending commercial mortgages. When we feel a client doesn’t require our services, we will literally tell them to go to the bank on their own. Essentially you only require a mortgage broker this circumstance when there are challenges within the file restricting the mortgage approval with a big bank. Then we take over and get the job done through an alternative source or more commonly through private lending.
Our investors grant mortgages ranging from $50,000 up to $20,000,000. Depending on the situation, we have an investor for your needs. Whether you are building a townhouse complex, need to refinance a warehouse or purchase an apartment building, we can help. Down payments can start as low as 10% down (apartments only) but the standard requirement is 25% to 35%. First, second and sometimes third mortgages are available with open, closed or partial terms. When dealing with private lending, it is typically one year interest only.
