subject: Commercial Real Estate Financing in Canada [print this page] Banks are in the business of lending to qualified investors; this means if a person comes forth with a large sum of cash and wants to buy a 55 unit building, they do not just give the money away. If the candidate does not have the previous experience in the commercial real estate sphere then banks will be reluctant to loan the money. Experience counts. It's comparable to the loan on a start up business. The lender is seeking as much of an assurance of successful repayment of the loan with interest as possible. The belief is that if a new person with no experience purchases the large commercial real estate then there is a higher chance that they will fail when compared to an investor with many commercial units and lots of experience. We advise our new investors to consider larger properties at the beginning of their investment careers in an effort to enhance experience and portfolio value.
All these three factors come together to create the commercial mortgage and we workvery carefully to provide investors a big picture perspective prior to engagement so that our clients know what they are getting into. Unlike many commercial real estate brokerages, we provide full service that includes financing. This means the real estate agent knows at what phase the mortgage process is in and therefore can act accordingly without the back and forth of an external mortgage agent. Furthermore because we are a licensed mortgage firm we can get you the best rate, make it easy, and we work hard to ensure you are approved. The commercial real estate mortgage process can take months; therefore one small mistake can kill the deal. This is why it is critical to have an in-house team working together seamlessly through all of the stages of the property purchase process to ensure that nothing falls through and that you get that dream commercial property you've always considered.
