Did You Know That You Can Improve Your Business Capacity through a Commercial Mortgage?

Like any other mortgage, a commercial mortgage is also available on providing your property as a collateral. Commercial mortgage provides an opportunity to the businesses. It provides businesses with an opportunity to establish and expand. A commercial mortgage is preferred for the properties and assets that produce running income as there is a direct comparison of the income and the expenses. It is given out on the basis of the financial standings of the company, and not on the basis of the individual’s financial position. So a well-established firm has a higher possibility of availing a commercial mortgage than a newly established firm.

 How Does Commercial Mortgage work?

Firstly, the borrower ought to be a company as it cannot be availed on an individual’s name. Commercial mortgages can be availed by keeping a business asset under the mortgage. Generally, these mortgages are taken upon office building, warehouse and other working assets involved for administration purpose in a company. The proceeds of a commercial mortgage are used to either refinance existing debt obligations or acquire property or for the expansion of a business. Residential properties can be mortgaged under commercial mortgages, only if they have been held for the purpose of investment and not for any residential purpose. An additional condition for the property to be eligible for these mortgages is that the properties should have a market, and they should be eligible for letting out.

Since commercial mortgages are in the name of the company and not in the name of the individual, the borrowers do extensive background checks for the persons who are involved in the management of the company. While availing the commercial mortgage, all the important financial documents and financial statements of the company.  Apart from these, the growth report and the other developmental aspects of the company should also be presented.

The benefits that an entity can attain out of a commercial mortgage are:

Rental to self-owing

Most commercial mortgages in Canada are taken upon residential properties investment, which is then rented. It is beneficial to the mortgage taker as the company need not invest a lot of owned capital.

Availing of the loan

Commercial mortgage approval relies primarily on the income generation of the asset being mortgaged. So if there are income producing assets with low risk in the change in their income, approval of a commercial mortgage upon that asset is easy for companies.

Contact Platinum mortgages in Ottawa to know the right mortgage suited to our financial needs

Why Are Mortgage Agents Popular In Real Estate Business In Ottawa?

Real Estate in Ottawa has been booming for a few years. In the meantime, there has been a growing demand for the mortgage agents of Ottawa. Mortgage agents traditionally did not exist. The job of a mortgage agent became popular at the end of the twentieth century in Ottawa. A Mortgage agent is one of the pillars of the mortgage and real estate market. Their importance had grown due to the increase in competition between the mortgage providers and the growth of the real estate market.

mortgage agent

Who is a Mortgage Agent?

Mortgage agents are service providers. Their service is to make the mortgage lenders meet the mortgage seekers. Originally, they are hired by the mortgage lenders in Ottawa, either on fixed pay basis or commission basis. So these mortgage agents find people who are planning to purchase properties so that they can arrange the right mortgage deal between the property buyer and the mortgage lender in Ottawa.

A mortgage agent in Ottawa could also be an agent of multiple mortgage lenders and hence can provide better service to the mortgage seeker by providing a wider choice to them. Apart from being agents, mortgage agents are also financial experts. A good mortgage agent can make amends in your financial plans basing upon which you are seeking for a mortgage policy.

What Are The Benefits Of A Mortgage Agent?

The mortgage agent’s fee towards the mortgage seeker is quite low for the service he provides, and if you are a mortgage seeker with a good credit score, then you may also not be charged any fee. Mortgage agent provides you with the best mortgage policy, suiting to your financial position and your choice. He also gives you financial advice, if how to deal with any financial issues that you could face because of your mortgage. Mortgage agents do all the paperwork in any of the mortgage deals happening under him which makes it very convenient for the mortgage seeker as he need not worry about any formalities to be done.

Considering all the mentioned benefits, a mortgage agent in Ottawa is useful to any first time home buyer or a mortgage seeker.