Quite recently the Federal Government came out with few revisions to the Residential Mortgage industry in an effort to limit the growth of the Canadian consumer debt. However these rules do not apply to commercial mortgages which are typically taken on by businesses instead of individual borrowers.
Alberta Mortgages understands the residential mortgage market and is well positioned to assist clients with their commercial mortgage requirements. A commercial mortgage is similar to a residential mortgage in many ways, except that the collateral is a commercial building or other business or real estate.
Calgary commercial mortgage market, as an example, includes but not limited to the following:
- Multi-unit residential
- Retail plazas, strip malls and shopping centres
- Office buildings and medical centres
- Industrial buildings
- Hotels and motels
- Land development and construction projects
- Etc..
Similar to residential mortgages, commercial mortgages can be new purchases or refinance to take advantage of a more favorable term. They can also be a re-mortgage to establish a line of credit to use for running the business. Like residential mortgages, the lender will hold the deed to the property until such time that the loan is repaid in full.
Transactions in commercial mortgages require far more paperwork than residential loans. It is required that the properties being purchased or refinanced undergo a thorough appraisal and a potential environmental assessment to ensure that the collateral can secure the loan and protect the lender against a default.
Alberta Mortgages understands the commercial mortgage market process and is able to offer speedy service to its clients saving them time and money by offering competitive Calgary commercial mortgage rates.
The amount of financing available for commercial mortgages is varied based on the property's Lending Value and the Net Income available to service the debt. However, the mortgage in most cases is supplemented by a general obligation from the borrower(s) or a personal guarantee from the owner(s). This will further secure the debt and ensure that it is payable in full in the event that the mortgaged collateral does not satisfy the outstanding commitment.
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Alberta Mortgages has established relationships with various commercial lending institutions."
Alberta Mortgages has established relationships with various commercial lending institutions. We are able to source commercial mortgages quickly and conveniently, for purchase and refinancing. We are able to offer assistance to clients who are seeking fixed rate loans or variable rate loans. Both of these loans work the same way as in the case of residential mortgages.
Calgary commercial mortgage rates as well as commercial mortgage rates in other areas are not stable and can vary much more than residential rates. The mortgage rates and fees are as varied as the players in the industry. Each property and borrower is unique making it unrealistic to quote rates and fees without a thorough understanding of the property and the covenant involved in the transaction. Hence it is that much more important to seek the experience of Alberta Mortgages. Our objective is to offer competitive Calgary commercial mortgage rates to satisfy client’s needs and help their businesses grow.
" We work closely with our clients and our lenders to offer an easy and timely funding process"
It is also important to remember that the commercial mortgage market is not stagnant. It is going through some dramatic changes of its own in Canada. The industry is moving towards securitization as an alternative to the traditional balance sheet lending approach used currently by the big banks and the lending institutions. New players are aggressively entering the Canadian market and are providing financing for insured properties and non prime "B" and "C" borrowers.
Alberta Mortgages understands the market and is positioned to offer borrowers with CMHC insured properties as well as non-insured properties competitive rates, fixed or variable, unique to the business needs. We work closely with our clients and our lenders to offer an easy and timely funding process.
If you are in the market for a commercial mortgage, purchase or re-financing, make Alberta Mortgages your choice to discuss the options available. We offer you and your business the right mortgage terms at competitive Calgary commercial mortgage rates and fees.
Zuhair Shlah
B.Sc., AMP.
zshlah@tmacc.com
Phone: 403-680-3720
Fax: 1-888-365-6066