Commercial mortgages can be a very complex project to complete. While there a lots of different types of properties that fall under commercial mortgages they all vary and have their own set of unique solutions that need to be sourced out.
Some of the basic types of properties that fall under commercial mortgages are self-storage facilities, car washes, theme parks, bowling alleys, marinas, theaters, funeral homes, community centers, nursing homes, and churches. As well as the classifications of office, industrial, multi-family and multi-use multi family. Raw land that come in the form of infill, green fields and brown fields. Hotels and motels of all classes also fall under commercial, so as you can see there is no shortage of types of properties that fit this category.
None of these types of properties are easy to finance, they all have different facets that make them unique and it takes a skilled commercial broker to sort out the different types of commercial mortgages. For instance building a hotel is usually limited to what is called flag ship properties which means you already have the backing of a major hotel chain that is putting their name on the building. Whether that is Motel 6 or Delta can make a big difference in who would look at financing your project. Building a strip mall or shopping center requires that you have a major anchor for the project as in a grocery store or big retailer that is willing to sign a long term lease.
Multi-family projects usually can be secured through CMHC’s programs and will mean a fee to them but it will usually offset by the project receiving much lower interest rates on their commercial mortgage.
At Dominion Lending Centres Brokers for Life we work closely with our in house commercial finance team. Dominion Lending Centres commercial mortgage team does over 2 billion in commercial mortgages each year and has CMHC approval which brings a lot of our clients some great rates on their commercial mortgages.
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