* Please note that the above stated loan-to-value ratios are subject to change as lending criteria and market conditions change. Call us today for more information. 

Commercial mortgage rates are not typically advertised, as the terms, conditions, and lending criteria differ from lender to lender. This is where our team of mortgage brokers can help you through the process of determining which product will best suit your needs. Our in house commercial mortgage broker specializes in office, industrial, retail, and rental apartment properties.

Qualification Criteria 

When pursuing a commercial mortgage, certain criteria must be satisfied in order to obtain the loan. More so than a residential mortgage, the bar is set high, as the overall value of the loans are significantly greater. 

• Debt service coverage ratio: This is the first and most important criterion that lenders will review and it is essentially the ratio of cash that is available to the required loan payments. The type of commercial mortgage you are trying to obtain will determine the loan-to-value ratio. Additionally, you will be required to invest some of your own money in the form of a down payment to reduce the risk to the lender in the event you default on the mortgage and the lender is forced to sell the property.
• Credit history: Lenders will require proof of good personal credit and supporting evidence that your business is creditworthy. There are lenders that will accept applicants with hurt credit scores, but not many.
• Current business situation: If your business is already established, commercial lenders will expect your business to be profitable and consistent. Lenders may ask for your business plan and financial projections to ensure you can support the payments required for the mortgage.
• Type of business: The terms of a commercial mortgage vary based on the type of business and the property to be purchased. Due to the complexity of this area, it is advisable to acquire a specialist (solicitor or chartered surveyor) to advise you.
• Down payment: Commercial mortgages require a higher down payment. A typical down payment for a mixed use property is 20-35%. Whereas, pure commercial properties are often higher, and can be up to 50%. Your risk profile is what will determine the down payment that is required.