We are here to provide first mortgage financing on conventional and CMHC insured (where applicable) commercial product types as indicated below. Loan proceeds are typically used to assist with the acquisition of the real estate or to re-finance any existing indebtedness.
Retail, Commercial, Industrial, Office and Multi-Family
Loans will be priced based on a combination of the applicant credit, location, cash flow, quality of security, competitive market pricing, and general market conditions.
Fixed Rate Loans: Market competitive
Floating Rate Loans: Market competitive
LOAN TO VALUE
Typically 65% to 70% for conventional retail, office and industrial and conventional uninsured multi-family residences.
Up to the maximum as permitted (85.0% of CMHC lending value) for CMHC insured financing.
Fixed Rate Loans: up to 40 years
Floating Rates Loans: interest only, subject to interest rate exposure and loan/value review.
1 to 15 years. Long term floating rate loans will be considered provided that the property is supported by a stabilized cash flow with an applicable rate cap that will be utilized to maintain the required debt service coverage.
Along with the real estate quality, sponsorship and location…the quality and quantity of the cash flow to service service debts is a key factor. Debt Coverage Ratios are usually in the range of 1.3.
Any applicable holdback will be subject to a review of the site inspection, building condition report and environmental reports. Assume Building Condition Reports will be required.
PREPAYMENT OF LOANS
Terms will vary depending on the lender, howver, following is a sample of how a prepayment could be structured.
Consideration will be given to allow the borrower to redeem the mortgage obligation with payment of the entire debt together with a bonus payment equal to the greater of three month’s interest or the present value of the future installments of principal and interest due until loan maturity in respect to the mortgage, including balloon payment due on the maturity date, subject to negotiation.
All loans will be secured by pre-approved standardized loan documentation including one of a combination of
- a first mortgage over the subject property;
- a general assignment of rents and leases;
- a chattel mortgage
- suitable property and liability insurance
All loans will be subject to receipt of the following. Depending on the circumstances, only some of the following may be required prior to funding.
- AACI Appraisal Report
- Phase I Environmental Site Assessment
- A lender site inspection
- Building Condition Report
- Qualified Insurance Consultant Report
- Historical Financial Statements (2 year minimum)
- Leases and estoppel certificates (if applicable)
Will be considered by a “case by case” basis.
Fixed Rate Loans: One advance on closing
Floating Rates Loans: Multiple advances will be considered
We look forward to a preliminary discussion of any appropriate lending opportunity you may encounter. However, in order to accurate review (and hopefully proceed with) an application; the following information will be of assistance (and eventually required)
a) For all applications
i) Copies of past (or current) appraisals and environmental audits
ii) Financial statements on the Borrower and Guarantors Statements must clearly identify all assets and liabilities including where applicable (i) descriptions of real estate assets (ii) confirmation and/or description of cash and security assets. All corporate involvements and related companies should be identified with ownership and interest shown.
iii) Other supporting documentation would include personal tax returns, notices of assessment from Revenue Canada for all applicants providing their personal guarantees. Additionally at least 2 years of operating company financial statements if guarantors are involved and derive income from other business ventures owned.
v) Photos of the subject property, if available.
b) For multi-family rental housing applications
i) Current (6 months) rent roll on property showing the number of units, certified by the owner and/or property manager. Rent roll shall include tenant’s name, occupancy date, monthly rent, damage deposit, suite # and amenities included (parking, laundry, etc.)
ii) Three years operating statements on the property . . .or a detailed breakdown of individual expenses.
c) For commercial property applications
i) A 2 to 3 year proforma of operating costs
ii) A 2 to 3 year proforma indicating to what extent operating costs are recovered from the tenants.