So you have finalized your plans, gotten all your quotes, applied for your permits and have hired a general contractor for your new commercial construction project. Next on your list is to secure your financing so construction can start. Now while you have owned several homes and a few small residential rental properties, this is your first large scale commercial project.
It’s understandable that for your residential properties that your priority has almost always been interest rate when negotiating or arranging your mortgages. However things are different on the commercial side of things.
For your commercial project you have determined that you will need 21.5M to complete it. You have your value upon completion already from an AACI commercial appraiser and fully occupied it will be worth 32M. Now you have arranged your own residential mortgages before so you call your own bank and they are interested in your project but only give you an offer for 18.3M but with an incredible interest rate so they say that it’s better than any other commercial lender in the market.
Being short 3.2M is not going to get your project finished. So that shiny attractive interest rate will not cut it. This is why for commercial mortgages the loan amount is paramount, followed by amortization ( the amount of years to pay back the loan) and then by interest rate.
So when you’re ready to start construction on your commercial project, please talk with us and we can prepare your loan package and then speak with the 10-15 commercial lenders we have available. Quite possibly getting you better terms from your own personal bank as we answer all questions up front and present a full package thus saving time for you and the prospective lender.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here