can you get a mortgage for commercial property

Can you get a mortgage for a commercial property?

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A commercial mortgage can be used to get a commercial property! What is the criteria to qualify? Why should you choose a commercial mortgage for your commercial property? Read on to find out!

A commercial mortgage, in essence, is quite similar to a normal residential mortgage. The only difference between the two lies in the collateral used. While a normal residential mortgage would use a residential property as a collateral, a commercial property is used as a collateral for commercial mortgage.

Commercial properties have returns. These are usually represented by a business and not an individual. The business representing the property is the borrower of the commercial mortgage and will be liable to pay against the same. The income and financial status of the business would play a major role in the approval process for a commercial property.

What does it take to qualify for a commercial property?

Lenders are not as concerned about the individual and their income, they will look into the company and whether the company is eligible to be able to pay off the loan within the stipulated time. The business acts as the borrower and hence the business will be scrutinized!

The lenders look into these areas generally to determine whether a business is eligible to get a commercial mortgage for a commercial property:

  • Creditworthiness of the business
  • Amount of down payment you can put forth
  • The growth chart of the business and it’s status in the current market
  • Your credit rating

Want to know if you qualify for a commercial mortgage? Get your commercial property valued by Platinum Mortgages Ottawa!

The business has to be on a rise or on its way to receive a big push if you want a commercial mortgage lender to approve your loan for the commercial property. How the business has been running and what are the future projections you expect out of it will play a major role in deciding whether the lender will forward the sum to you.

Your income, though it may not play such a significant role, will also be in the lime light. Your credit ratings, your credit history and other business plans and performances in enhancement will be looked into before you get an approval for a commercial mortgage.

Why choose a commercial mortgage?

A commercial mortgage can be the reason you have turned your commercial property into a money making machine. Whether it is for renovations, business expansion or investment purposes, a commercial mortgage can make the difference you needed for your business to reach new heights.

A mortgage for a commercial property can be obtained with the help of a mortgage broker. Lenders will require a good presentation on what you intend to do with the money you receive and how you will use it. A mortgage broker can help you smoothen it out and ensure that you get the best mortgage for your commercial property at the best rates!

Contact Platinum Mortgages Ottawa for the most competitive mortgage interest rates for your commercial property!

How to get approved for commercial mortgage in Ottawa

What Does it Take to have Your Construction Loan Approved In Ottawa?

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What Does it Take to have Your Construction Loan Approved In Ottawa?

Constructing a home is much more an intense work than just selecting and mortgaging one. It is hence advisable to consult a broker to help you scan all your options in the market to have your construction loan approved conveniently. While applying for a construction loan, the lender will look at multiple aspects in detail on one hand, but will also be willing to fund every step of your construction on the other.

How to get approved for construction loan in Ottawa

The aspects have been listed out as follows so as to help you understand your loan application in Ottawa thoroughly.

Land or Estate

A construction loan involves the aspect of buying or already holding the land on which you would construct the home. In case you already hold an estate, a major step in your construction has already been completed and the loan would simply shift to the next step.

Builder

The builder is usually an important aspect as he may himself have many inputs on how much the entire project would cost and how much funding do we seek for in accordance with the design and the plan.

                   Begin here to Construct Your Own Customized Dream Home in Ottawa!

As simple as a mortgage loan where you receive the amount initially to buy a home and then you pay back in parts, in a construction loan you usually get the amount in parts so as to fund and finalize the construction at every step specifically. For instance, the first step is the purchase of an appropriate land, here you will be initially given the amount to buy the land alone. On the closing of its purchase it is then where this step will be inspected and the approval for funding the next step which is installing a foundation or planning a design, shall be granted.

                  Get Your Construction Loan Approved Here with platinum mortgages Ottawa

How to pass stress test for first time home buyer in ottawa

HOW TO PASS THE STRESS TEST FOR FIRST TIME HOME BUYER OTTAWA

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HOW TO PASS THE STRESS TEST FOR FIRST TIME HOME BUYER OTTAWA

The stress test has been imposed by the government of Canada to reduce the people falling into debt traps. Getting a first time home buyer mortgage in Ottawa is not easy, especially if you have bad credit or are self employed. This stress test for first time home buyers looking for a mortgage in Ottawa is pretty stringent. They need you to be up to date and financially secure within all aspects and make sure that you will be able to pay off your first time home buyer mortgage from Ottawa easily!

How to pass stress test for first time home buyer in ottawa

What is a stress test?

A stress test is basically a method to see if you could survive the rise in rates and would be able to keep up with mortgage payments even if you lose your income or get demoted. First time home buyer mortgages are a simple process since such borrowers do not have much debt to their name. But now-a-days it has become harder for people to obtain such a mortgage because of the stress test. It tests your financial stability and endurance under stressful situations to make sure you can pay off your mortgage easily.

How to pass a stress test?

First time home buyer mortgages in Ottawa require you to meet certain requirements.

  1. Your credit history and debt to service ratio are supposed to be well maintained.
  2. Your income and financial position come under heavy scrutiny and are put under real pressure to see if you and your financed will be able to make it through difficult times and make payments for your first time home buyer mortgage in Ottawa.
  3. Ottawa rules are getting pretty strict and hence it is of utmost importance that you come prepared for a meeting with your lender for a first time home buyer mortgage!

Ottawa rules state that, for a first time home buyer mortgage, you require your credit score to be excellent to avail the benefits of a normal score mortgage plan. The rates are currently on the rise and hence you can be sure to qualify for a lesser amount than you had originally planned. If you have too much debt, you need to work hard to make sure it is reduced from your first time home buyer mortgage application in Ottawa. It is better to work on your finances before you apply for your first time home buyer mortgage from a lender in Ottawa!

If you have bad credit or are self employed, you can opt for a private lender. This can help you escape the stress test entirely. But if you want to apply for a traditional plan, you really need to bring your finances up to the mark. That is probably the only way to pass the stress test easily. You can always take help from your broker. They can help you access proper deals and maybe even the mortgage amount you need with a better plan. Ready your finances to match the stress test and you are good to go!

To talk with our mortgage Advisers you can visit:Platinum mortgage Ottawa

 

5 BAD REASONS TO REFINANCE YOUR MORTGAGE IN OTTAWA

5 BAD REASONS TO REFINANCE YOUR MORTGAGE IN OTTAWA

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5 BAD REASONS TO REFINANCE YOUR MORTGAGE IN OTTAWA

Mortgage refinancing in Ottawa seems like a great way to save money to most people. When the rates fall in the market, mortgage refinancing is the trend to catch up with in Ottawa! But a lot of people use the option in ways which can only affect them adversely. It is important to decide when mortgage refinancing in Ottawa could actually be a bad idea for you. We have to consider all our options and the total amount we would be spending and saving before we choose to refinance our mortgage plan.

5 BAD REASONS TO REFINANCE YOUR MORTGAGE IN OTTAWA

Here are the top 5 worst reasons to do mortgage refinancing in Ottawa:

To invest:

  • Money flows out of our hands when we have it. Most of us do not have control over what we are spending on. Having an option from which we can get the funds we need whenever we need them, makes us irresponsible. Unless it is absolutely necessary, we should try not to spend money which we don’t have with mortgage refinancing in Ottawa. Money management is very important and increasing our debt is not going to help us save anything.

Longer term:

  • In Ottawa, mortgage refinancing done to get lower rates with a longer term is useless unless you start saving less time, mortgage refinancing in Ottawa in a longer time frame can actually harm you. Most of us just look at the rates and assume that if it is lower than the one we are paying, we tend to go for it! But if you are not getting any benefits such more mortgage time, then this is a bad financial decision!

To save up for a second home:

  • If you are planning to take up a new home and want to save for your down payment with the help of mortgage refinancing in Ottawa, it would be wise to look at all your options before doing so. This will not only extend the term of this loan, but also affect your credit score. You should make sure it goes with your financial goals.

Taking more cash out:

  • This is probably one of the worst reasons to refinance. It just keeps putting you back to square one and will not bring you any closer to the day when you would be debt free. This could harm you more than it can help you. It is a vicious cycle and people keep on borrowing with mortgage refinancing in Ottawa and end up in debt they can’t pay off. This could cause your financial situation to worsen and you could become bankrupt!

To switch your type of rate:

  • If you are considering mortgage refinancing in Ottawa for the sake of changing your rate type, then it is very important to consider how much you would be paying. The main aim of mortgage refinancing in Ottawa is to save money. If your new plan doesn’t help you to do that, then it’s a bad reason to change your current plan!

To know more about Mortgage refinancing you can contact our team : Platinum mortgage Ottawa

5 QUESTIONS FOR THE BEST FIRST TIME HOME BUYER MORTGAGE OTTAWA

5 QUESTIONS FOR THE BEST FIRST TIME HOME BUYER MORTGAGE OTTAWA

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5 QUESTIONS FOR THE BEST FIRST TIME HOME BUYER MORTGAGE OTTAWA

Taking a first time home buyer mortgage Ottawa, can be quite the task for a person who does not have the experience. There are a lot of procedures involved and you hardly ever know if you’re getting the best rates and plan. Here is a list of questions to ask yourself and your lender to determine how good is your first time home buyer mortgage Ottawa.

5 QUESTIONS FOR THE BEST FIRST TIME HOME BUYER MORTGAGE OTTAWA

 

  1. What can I afford?

This is the first and most important you should be asking yourself. When you get a first time home buyer mortgage in Ottawa, it is important to know how much the lender would be willing to give you. This can help you to align your search for homes accordingly and make a proper plan for the budget. Getting pre-approved is always a wise choice.

  1. How does my credit score affect me?

Your credit score is the first point of reference for your lender. It can get you better rates or put you in a position where you don’t qualify for a traditional first time home buyer mortgage in Ottawa. If you have a good credit score you can access the best rates with ease. If you have bad or bruised credit score, you will need to work harder for a good rate.

  1. Does a pre-approval help me?

Getting a pre-approval for your first time home buyer mortgage in Ottawa is always the best choice. It has two benefits: it allows you to know what you can afford and also it helps you to seem like a serious buyer to the seller of a home. It also gives you an edge over your competition.

  1. What is mortgage insurance?

Mortgage insurance taken on your first time home buyer mortgage Ottawa helps you to secure your asset against defaults in loan payment. This will definitely hike your monthly payments, but it will be one of the best decisions you make if you are not sure how your financial health will be in the future.

  1. Do I need to hire a broker?

For someone who is getting their first time home buyer mortgage in Ottawa, it is crucial they have the best help from professionals. This could help them negotiate for the best rates and can even help with bad credit. A mortgage agent or broker can make your dreams come true much faster since they have good experience.

To know everything in details you can visit: Platinum Mortgage Ottawa

home purchase ottawa

HOME PURCHASE OTTAWA – 5 THINGS TO KEEP IN MIND

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HOME PURCHASE OTTAWA – 5 THINGS TO KEEP IN MIND

A home purchase in Ottawa is an exciting experience. Finding the right location, the perfect home, planning all the additions for them, all-in-all sums to one of the most amazing experiences of all time. But it is one of the biggest investments you will make in your life. It is better to go about a home purchase Ottawa with extreme care and acumen.

home purchase ottawa

These few tips can help you to make the perfect home purchase in Ottawa:

  1. Decide your budget:

    The most important thing to keep tabs of in your entire process of purchase is to make sure you know what you are willing to invest in the home purchase project in Ottawa. As a result, it helps if you research and make an informed decision. The area, the home, and the neighborhood have to be known to build an estimate.

  2. Get a pre-approval:

    The surer you are of your budget, the better choices you can make. It is simple to get a pre-approval. Knowing your budget can make you aware of the choices you have and help you narrow down your search tremendously. It can also help you seem like a serious buyer to your seller, thereby giving you the edge you need over your competitors. It is now being considered as the first step for any home purchase process in Ottawa.

  3. Be reasonable:

    If you want better rates and a better deal on your home purchase in Ottawa, you need to be agreeable with the seller on some points at least. The closing date can be decided by the seller to help you stand out among the multiple buyers. This would mean getting your house quicker, but it could make the difference you need.

  4. Be ready to make large deposits:

    Having a larger down payment when compared to your competitors can help you get the rates you need on your home purchase in Ottawa. It could also help you to get a loan which is for a lesser amount, thereby enabling you to pay it off faster and more easily.

  5. Hire a mortgage agent:

    A person who knows the market, the current trends and everything which can help you get better rates and options is definitely a valuable asset in your arsenal. Hiring a mortgage broker can have multiple benefits. They can also help you get a great deal and help you search for houses.

for more details you can visit: https://platinummortgagesottawa.com/#services

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

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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?

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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.

How Private Mortgages Are Useful To the People of Ottawa?

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Private Mortgages in Ottawa are boon to the people who are caught in between the scuffle of obtaining a bank loan only because of the excessive formality and regulation. Private mortgage refers to obtaining a mortgage from private lenders or says lenders other than banks and financial institutions. There are a lot of private mortgage lenders available in Ottawa because a lot of people are ready to provide credit with lenient terms. These private mortgages in Ottawa are usually smaller in their tenure, generally for 1 to 3 years. A key feature of private mortgage is that the repayment of not all private mortgage agreements in Ottawa are through EMI, but by repayment of interest periodically and principal repayment is at the end of the tenure.

Private mortgage Ottawa

How Does Private Mortgage Work and What Are Your Benefits?

Private mortgages in Ottawa come in a variety of terms and conditions since each private lender may have individual conditions as per his position. Also what matters is your position of credit and amount of loan. Initially, you can approach a good broker in Ottawa, as the private lending market in Ottawa is more diverse and deep than the official means of credit.

The private lender then formulates a loan document in which all the terms and conditions are laid down. Also, the provisions for refinancing at the end of the tenure are laid down, in case you are not able to pay back the full principal at the end of the mortgage tenure.

In the situations when you are up to purchasing a property which a formal lender won’t finance or you need quicker financing or when you have a relatively bad credit history as per the requirements of banks, then private mortgage lenders in Ottawa are the most suitable option available to you.

When in case you are in need of a short-term finance for your property which has home equity, a private mortgage is a right option for you. Also when you are not in a position to pay back high amounting EMIs for a reasonably long period and can only afford to pay the interest, private mortgage comes to your rescue.

What The Businessmen In Ottawa Should Importantly Know About Commercial mortgages?

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Commercial loans are the loans sanctioned for business purpose and not to any individual for personal needs. By business purpose, it means that commercial loan can be taken for the purposes of expansion of your current operations, or the purchase of new plant and equipment in order to align growth. Commercial loans can be availed by a variety of entities belonging to varied categories. Also, a few entities in Ottawa opt for commercial lending to fund their operational expenses. Commercial lending may also be sanctioned for smaller purposes such as payroll payment requirements, or ancillary costs for the flexible running of production.

The below mentioned are few of the commercial lending types in Ottawa

-Construction Loans

-Commercial Mortgages

-Land development and servicing loans

-Canada Small Business Financing Loans

How Commercial Loan Process Works

As in any other loan in Ottawa, creditworthiness is an important aspect in the process of sanctioning of the commercial loan, in determining the amount of loan and the security required. You will be required to present your historical financial documents such as Balance Sheet, Profit and Loss Statement, to the bank or the lending financial institution. The financial documents are assessed and are considered good if they reflect positive and consistent cash flows. This assures the lender that, apart from the Profit the business generates, it has enough cash to pay back the loan in requisite time on the terms of the loan contract. The commercial lending in Ottawa is sanctioned at the prime lending rates and only in specific cases, the rates differ.

If you are opting for a commercial lending for equipment or a depreciable asset which also poses the risk of breakdown due to reasons like natural calamities, short circuit, and other, then the banks require you to insure the asset in full, from the loan fund which is sanctioned to you. In the course of the loan, you are required to submit your monthly or quarterly financial statements to the bank till the repayment of the loan.

As commercial loans act as an aid to the businesses for reasons like working capital requirements, or short term loans for the seasonal demand push in Ottawa and such, the commercial lending also have the provision of renewal at the time of sanction. In a renewable commercial loan, the loan is automatically ‘renewed’ for an additional period as the original loan repayment is made. A capital intensive business in Ottawa most often seek for renewable commercial loans.