Toronto Commercial Mortgage Broker Company
Are you interested in getting benefits from the best Toronto Commercial Mortgage Broker Company? Whoever desires or needs to get commercial mortgage, his first priority is to get the mortgage at the lowest possible interest rate. But here you need to note down one very important thing. Before finding the best mortgage commercial rates, it is more important to find out if you could even qualify for such mortgage plan or not. There are many factors that play role in determining those who could get qualified for commercial mortgage or for commercial mortgage refinance.
Before commencing forward, it is important for you to understand that there is a lot of difference between commercial and residential mortgage. When you talkabout residential mortgage, then you come to know that the guidelines for these mortgages are set and designed by the federal government and whosever meets the criteria, can be qualified for that mortgage. Whereas, the guidelines and criteria for commercial mortgage is entirely different.
Residential mortgage lenders look at the credit history, requires down payment and look for the qualifying income of the applicant. But when you apply for commercial mortgage then your commercial property is underwritten by the lender.
The following things are considered by the lender when someone wants to get qualified for the commercial mortgage.
- The location of your commercial property is checked. If it is located in any of the large sized urban metropolitan area, then it will be considered as the property with least risk and the lender will give preference to it for commercial mortgage.
- The borrower must have a very good credit score. If his score is 68 or above, then that then it will be just fine.
- If the borrower has the down payment that is 2-25% of the total expected mortgage amount, then the lender will consider it as a positive figure.
- Checking the qualifying income from that commercial property isvery important for the safety of lender’s money. The lender will find out if that property isbringing in adequate cash flow or not. If it is bringing sufficient cash flow, then the borrower will be expected to service the debts in time.
- The commercial property is supposed to be in good condition.
- The lender will look into the net worth of the borrower.
- The cash liquidity of the borrower will be inspected in detail.
Now let’s have a look at the benefits any business owner can avail through commercial mortgage.
- When you get this kind of ownership, then you do not lose its ownership but can retain total ownership of your business and will never find need of raising funds by selling its shares to a third party. If you will find an investor for your company to get financial support, then he will expect to have a certain share in your business but when you will talk commercial mortgage loan, then the lender will just expect a certain amount of interest on the amount you will borrow as mortgage.
- When you will get commercial mortgage, then you will not have to spend all your savings for the purpose of buying a new commercial property.