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Understanding Commercial Mortgages

There are a variety of elements to understand when it comes to acquiring a commercial mortgage. Learn more about our commercial mortgage services by visiting https://www.outline.ca or by calling us at (416) 536 9559.

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Understanding Commercial Mortgages

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  1. UNDERSTANDING COMMERCIAL MORTGAGES

  2. Commercial mortgages are mortgage loans secured by commercial properties such as an office building, shopping centre, industrial warehouse, or apartment complex. They are now being viewed as a source of business funding. Commercial mortgages came to play because they’re beneficial to both the lender and the borrower.

  3. Who can provide commercial mortgages other than banks? Conduit lenders which include both banks and non-bank finance companies can provide commercial mortgages. Some government agencies, Insurance brokers and Mortgage brokers provide commercial mortgages as well. Which properties are ideal for commercial mortgages? Properties like retail malls, shopping centres, office buildings and complexes, and hotels are usually ideal for commercial mortgages. What is the tenure range for commercial mortgages? The tenure for commercial mortgages can range from less than five years to 20 years, with the amortization( The number of years over which a loan will be completely paid by regular monthly payments of principal and interest) period often longer than the term of the loan. Are commercial mortgages only limited to individuals? Commercial mortgages can be made to limited partnership funds and trusts, corporations, developers and other such business entities. These entities are often formed for the specific purpose of owning commercial real estate.

  4. Benefits of Commercial Mortgages It reduces the risk of being exposed to increasing rental charges. Long term benefit of a commercial mortgage is that it can help future-proof your business by allowing it to access equity as the property price increases. It is a flexible way of financing your property purchase - so long as you have tangible assets to secure against. As commercial mortgages are a big financial commitment, you have to understand what your mortgage lender wants from you and what you want from your commercial mortgage. What will you need to do to apply for a commercial mortgage? A few financial checks your lender is likely to go through are your asset and liability statements, details and profiles of all directors and partners of the business, bank statements, current and projected performance figures, and three years of tax returns.

  5. Contact us • Further, to know more about the knacks that help you benefit the most from Commercial Mortgages, visit us on Outline Financial or call us on (416) 536 9559. • Email your queries at hello@outline.ca and get in touch with the team at Outline Financial and avail their services. 465 King Street East – Suite 15 Toronto, ON M5A 1L6, Canada (416) 536-9559 hello@outline.ca https://www.outline.ca/

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