We have associate Mortgage Broker who carry with them vast experience in business financing with an emphasis on products and services for growing businesses as well as the new business owners. In addition, they provide selected personal financing products - many of which that have been developed for business owners.
The unique business model is built around providing the best available financing solutions for your unique needs, and delivering these solutions to you in the way you want them. Whether you prefer to do business over the internet, or via telephone, fax or email, the mortgage experts will do business with you the way you want it done.
Their areas of expertise include:
- Financing Solutions for Businesses
- Vendor Financing Programs for companies that sell equipment and machinery
- Online Financing programs for vendors, internet verticals and internet portals
- Selected Personal Financing Solutions
- Mergers, Acquisitions and Investment Banking
We have developed relationships with several top Mortgage Consultants and Broker and have a full time Mortgage Broker associated with our office.
If your business needs mortgage financing, simply contact us, tell us what you are looking for, and we will refer you to one of our strategic mortgage financing partners for a free consultation. Our partners offer mortgage financing for the following types of properties:
Let us be your single point of contact for all of your business financing requirements.
- Income Properties
- Gas Station
- Apartment Buildings
- Industrial and Retail Plazas
- Office Buildings and Stores
- Retirement Homes
- Nursing Homes and Stores
- And more!
Helpful Notes for Mortgage / Financing (Commercial)
Even after you have provided your banker with all the reports they have requested, you will still have to jump through more hoops to qualify for the mortgage. They will not only want to see that you are buying a quality property but that there is sufficient cash flow from the rental or sales income to cover the new mortgage, property taxes, maintenance, utilities, vacancies etc. In fact, most lenders will want to see that there is sufficient cash flow after operating expenses (not including the mortgage) to cover the mortgage payments in excess of 1.2 times.
Assuming your property meets all the banks lending requirements, you will then find that most commercial mortgages are priced substantially hire than residential mortgages. Some lenders will price their commercial mortgages based on residential posted rates plus a certain percentage while others will base your rate on a spread above the equivalent yield on a Government of Canada Bond for a similar term. You will also discover that unless you are looking for a commercial mortgage in excess of $2 million there is not much room for negotiating with your lender.
Not only are your interest rates higher for commercial mortgages but most lenders will also charge you a fee to arrange the mortgage. These fees are usually between 1½% and 1% of the mortgage amount.
Now that you have come this far you discover that your lender wants to use its own law firm to represent its interests. So not only do you have to pay your lawyer but now you also have to pay the bank's lawyer to handle your mortgage transaction. Rest assured that your bank did not pick its lawyer because they were the cheapest game in town!
It is not unusual for people to find a property they want to buy only to discover that their bank will not even consider giving them a mortgage. The banks are usually very selective in choosing the type of properties they will lend on and the locations that they will lend in. If your property is unique or in the middle of nowhere you can have problems arranging financing.
Most mortgage brokers deal in commercial mortgages, but once again there are costs involved. For most commercial transactions you will have to compensate the broker for their time and efforts. Typical brokerage fees can range anywhere from 1% to 4% of the mortgage amount. The cost is usually determined by the degree of difficulty in obtaining your financing.
Investing in commercial real estate is not for everyone. The costs to enter the market are prohibitive, as are the costs to exit the market. Commercial real estate is a long-term investment so you need to do your homework and find a property that can make you money over the long haul. Unlike those late night infomercials, there is rarely any quick money to be made in the commercial real estate market.
Buy Sell and Rent Real Estate in CANADA
Century21 Elite Estates Limited (Brokerage)
CENTURY 21 Elite Estates Ltd. • 405 Britannia Road East, #101, Mississauga, ON L4Z 3E6
. Direct : (416)566 1102 • Phone (905)502 5800 • Fax (905)502 1800 • Email : NadeemRealty@Gmail.com .
© 2006 Century 21 Real Estate Corporation. CENTURY 21® is a registered trademark licensed to Century 21 Real Estate Corporation. Equal Housing Opportunity. Each Office is Independently Owned and Operated.