can you get a mortgage for commercial property

Can you get a mortgage for a commercial property?

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

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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 long does it take to get your mortgage pre-approval in Ottawa?

The mortgage process in Ottawa is already long. How much of that time goes in your pre-approval? Find out the answer to the most common question for Ottawa borrowers below!

Well, to give the short version, if you have all your ducks in a row, the application process should be as fast as a few days!

The mortgage pre-approval process could, however, take even up to a few weeks. This depends on three major factors:

  • The type of mortgage
  • The lender
  • The documents and application you have submitted

If you have a normal mortgage, you could get your mortgage pre-approval from your Ottawa lender faster than most. But this could again be delayed if you have not put your documents in order or haven’t gotten the right one.

It sometimes so happens that your mortgage pre-approval may be delayed because of the speed and processes of the lender you are looking to borrow from. They may have to perform certain checks twice or even reassess some of your documents.

Mortgage pre-approvals take this much time mainly because they are a hard check into your finances. An underwriter gets involved and your finances are assessed to give you the closest estimate of the mortgage amount and rate for which you are eligible.

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How do you make sure your mortgage pre-approval is quick?

  • Update your documents
  • File them in order
  • Complete your application
  • Submit all required details

If you have your documentation up to date and ready to be reviewed by anyone, you can be sure that your application would be in the fast lane! Lenders always appreciate a clean and up to date income statement. It makes their task very easy.

Filing your documents in an orderly manner with a complete and properly filled application helps the lender to access the required information quickly and process your pre-approval in a speedy manner.

As a borrower, you can ask your lender what they require and make it a point to submit the details accordingly. This makes you seem reliable and trustworthy and a lender in Ottawa would definitely process your application faster.

What are the documents required by lenders generally?

Lenders usually require income statements and tax returns. They prefer to have your credit history and score with the documents to assess your ability to pay back the loan on time. They also require recent payment stubs.

If you are self-employed, the lender will also require proof of business. The rest of the process is similar for a self-employed borrower. Citizens who are new to Canada or have bad or no credit history can contact a mortgage broker to help with their pre-approval.

In Ottawa, mortgage brokers from Platinum Mortgages Ottawa can help you get your mortgage pre-approval very quickly. They work to make your application as clear as possible and even help you secure the required documents.

Contact Platinum Mortgages Ottawa for the speedy mortgage pre-approval you deserve!