Commercial Lending is a specialty in of its own. IMM Financial has many types of Commercial Lending apart from your Commercial Mortgage.
While your neighbourhood bank may say the do Commercial Mortgage Lending, to actually be considered for their programs may be a significant challenge, and if your Commercial Property happens to be Rural as well… Good Luck with a Bank.
- Gas Stations
- Income Properties
- Multi-Residential Properties – Apartments
- Bridge Financing
- Raw Land Financing
- Business Financing
Commercial Mortgages will require a higher down payment that a residential home purchase. The income of the business which is purchasing the property will have to show income that the company has that will enable it to make the payment of the mortgage, which is generally on a monthly basis. Some programs will allow quarterly payments but this will depend on the history of cashflow for the business to substantiate this need.
The Loan-to-Value will also be affected by the industry type of the Commercial Property as some property liquidation values are more volatile than others. As a risk management tactic, the Commercial Lender will want to mitigate the risk probability by adjusting the LTV and interest rate. Other factors such as the age of the building, company maturity, industry and geography also come into affect for the requirements of your Commercial Mortgage Application.