COMMERCIAL MORTGAGES & SMALL BUSINESS LOANS
Commercial and business financing can support the purchase, refinance, renovation or expansion of commercial properties and businesses.
Whether you are acquiring commercial real estate, purchasing or expanding a business, financing equipment, improving leased premises, or looking for working capital, the appropriate financing structure depends on the project, business performance, available equity and lender requirements.
COMMERCIAL MORTGAGE FINANCING
Commercial mortgage financing may be used to purchase, refinance, renovate or expand commercial real estate.
For an established business or corporation, financing is generally assessed based on the strength of the business and the property, including financial statements, cash flow, debt-service capacity, available equity, property value and, where applicable, rental income, leases and occupancy.
The financial strength of shareholders or guarantors may also be considered as additional support, particularly where the business is newer, smaller, or has limited operating history.
COMMON COMMERCIAL PROPERTY TYPES
✓ Office Buildings
✓ Retail Properties & Shopping Centres
✓ Industrial & Warehouse Properties
✓ Mixed-Use Properties
✓ Multi-Unit Residential Buildings
✓ Hotels & Motels
✓ Medical & Dental Properties
✓ Restaurants & Hospitality Properties
✓ Daycare & Educational Properties
✓ Self-Storage Facilities
✓ Automotive Properties
✓ Special-Purpose Commercial Properties
PURCHASE, REFINANCE & PROPERTY IMPROVEMENTS
Commercial mortgage financing may be considered for:
✓ Purchasing commercial land or buildings
✓ Refinancing an existing commercial property
✓ Renovating or expanding business premises
✓ Construction or redevelopment projects
✓ Accessing property equity for eligible business purposes
Available financing, down payment or equity requirements, amortization and pricing vary by lender and transaction.
BUSINESS PLAN
A well-prepared business plan can help lenders understand your business model, market, management strategy, financial projections and how the requested financing will be used. For newer or expanding businesses, it can be an important part of demonstrating the viability of the business and its ability to support the proposed debt.
SMALL BUSINESS LOANS
Small business financing can help entrepreneurs start, purchase, operate or expand a business without necessarily being tied to a commercial real estate transaction.
Financing options may include term loans, working capital loans, equipment financing, business acquisition financing and lines of credit, depending on the lender and purpose of the funds. Financing amounts vary by lender, program, business strength and use of funds.
CMHC-INSURED FINANCING FOR MULTI-UNIT RENTAL HOUSING
CMHC mortgage loan insurance can support the purchase, refinance or construction of eligible multi-unit rental properties in Canada.
For standard rental housing, eligible properties generally require at least 5 rental units. Depending on the project and financing structure, CMHC-insured financing may provide access to higher loan-to-value ratios, preferred interest rates and longer amortization periods.
CMHC STANDARD RENTAL HOUSING MORTGAGE FINANCING
✓ Up to 85% loan-to-value
✓ Up to 40-year amortization for existing properties
✓ Up to 50-year amortization for new construction
✓ Available for eligible construction, purchase and refinance transactions
✓ Minimum 5 rental units
✓ Qualification remains subject to CMHC and lender underwriting requirements
CMHC MLI SELECT MORTGAGE FINANCING
CMHC MLI Select provides enhanced mortgage insurance flexibilities for eligible multi-unit projects that meet criteria related to affordability, energy efficiency and/or accessibility. The program uses a points-based system, with greater incentives available as projects achieve higher qualification levels.
Depending on the project and points achieved:
✓ Financing may reach up to 95% LTV or loan-to-cost
✓ Amortization may extend to 40, 45 or 50 years
✓ Incentives may include reduced insurance premiums and other financing flexibilities
✓ Available for qualifying new construction and existing properties