Commercial Mortgages from Banks

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Empower Growth with Mortgages!

A commercial mortgage from a bank is a great way to secure financing for your business property. These loans are designed to meet your needs whether you are looking to buy, refinance,  or improve a commercial space. Banks offer competitive interest rates and flexible terms, which make it easier to find a plan that works for you.

A commercial mortgage gives you the funds to grow whether you're expanding your business or investing in a new location. With a bank loan, you can own the property that supports your business and gain financial stability for the future.

Eligibility Criteria For A Commercial Mortgage From A Bank

Here’s what you need to qualify for a commercial mortgage from a bank in Canada:

  • Strong Credit Score: Banks typically look for a credit score of 650 or higher.
  • Solid Business Plan: A clear plan outlining how the business will operate and generate income.
  • Stable Cash Flow: Consistent business revenue to prove the ability to repay the mortgage.
  • Deposit Amount: Usually 25% to 35% of the property’s value.
  • Debt Service Coverage Ratio (DSCR): This ensures the business can cover its debt obligations.
  • Property Appraisal: A professional valuation of the property to confirm its worth as collateral.

How Does A Bank’s Commercial Mortgage Differ From A Residential Mortgage?

Commercial mortgages are quite different from residential ones:

  • Purpose: Commercial mortgages are for properties that are used by businesses like offices or stores, while residential mortgages are for buying a home.
  • Down Payment: Commercial mortgages typically require a bigger down payment—around 25% to 35%—while residential ones may need as little as 5%.
  • Interest Rates: Expect higher interest rates for commercial mortgages because they carry more risk for banks.
  • Loan Terms: Commercial mortgages usually have shorter terms, around 5 to 20 years, compared to the longer terms (up to 25 years) for residential ones.
  • Qualification: To qualify for a commercial mortgage, businesses must show stable income, while for residential mortgages, personal credit and income are the main factors.

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Unlock Your Business Potential With

Funds You Need

Whether it’s for new equipment, expanding your team, or improving your space, financing can help you grow without the heavy upfront costs.

Fuel Your Business Growth

Whether you’re opening a new location or launching a product, getting the right funds allows you to take action and grow your business at your own pace.

Keep Your Cash Flow Steady

Loans and lines of credit can help you manage cash flow during tough times, keeping your business running smoothly all year long.

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