residential & Commercial Mortgage

Commercial mortgage is money that you borrow in order to purchase a property. A residential mortgage is a large long term loan taken out by one or more individuals to buy a home.

Commercial Mortgages

A commercial mortgage is money that you borrow in order to purchase a property. While the difference between a residential property and a commercial one might seem small, it actually has a huge impact on the terms of the mortgage.

What types of properties are considered commercial?

There are some obvious examples of commercial real estate properties, such as stores, office buildings, and warehouses. But some residential properties can be purchased with a commercial mortgage if the reason for purchasing is commercial in nature – a multi-unit apartment building that you plan to rent out can be considered commercial.

Types of Commercial Mortgages

Example Property

Pure Residential (Investment Properties)

1 – 4 units, such as a home, duplex, or townhouses. 5 or more units, such as an apartment complex or condo building

Residential Commercial Mixed

1 – 4 units, such as a home, duplex, or townhouses. 5 or more units, such as an apartment complex or condo building

Pure Commercial

Shops, Shopping malls, Office building

What are commercial mortgage rates?

Commercial mortgage rates are higher than residential rates. The exact rate depends on the type of property being financed.
  • Commercial Mortgage Types
  • Independent Business. Owned/Occupied Suildings including Retail. Manufacturing and Service
  • Office and Professional/Medical Dental Buildings
  • Hospitality including Restaurants, Hotels, Motels, Pubs
  • Real Estate development, Land Acquisition, Subdivision Servicing, Single Family Home or Town Home projects Condominium Projects and Shopping Malls
  • Care Homes, Seniors Homes and Low Cost Housing Projects
  • Multi -Family Residential units six units or more; may be financed on a conventional or CMHC insured basis. When financed via CMHC insurance, loan to value available up to based on CMHC determination of lending value. Interest rates will be .75/1.0% lower than conventional. CMHC insurance fees will apply but are typically offset by the lower rate over the first five year term.
  • Business Loans loans for operating purposes, equipment and machinery may be available equipment leasing

Residential Mortgages

A residential mortgage is a large long term loan taken out by one or more individuals to buy a home to live in. With a residential mortgage the home must be used as a residence by the borrowers, not rented out to tenants or used for commercial purposes.

Mortgages assist people in purchasing home on combination with a down payment, or depending on the financing available, they may qualify to borrow the complete purchase price.

If a borrower already has a home and wishes to refinance the property. Refinancing means to increase to increase the size of the mortgage or renegotiate  it in some fashion.

Debt consolidation is debt financing that combines 2 or more loans into one. A debt consolidation mortgage is a long-term loan that gives you the funds to pay off several debts at the same time.

Consolidation is particularly useful high-interest loans, such as credit cards. Usually the lender settles all outstanding debt and all creditors are paid once.

A home equity line of credit is a revolving line of credit taken out against the equity in your home. Revolving means that it can be accessed at anytime, and paid down at anytime with no penalty. Because a HELOC is secured with your own home’s equity, the rates are much lower than standard lines of credit.

Pre-approval means that a lender has stated in writing that you qualify for a mortgage loan based on your current income and credit history. A pre-approval usually specifies a term, interest rate and mortgage amount.

When your mortgage term comes to an end, you’ll need to pay off your mortgage renew it for another term. This is a good time to review your needs and make sure you have the right mortgage if your needs have changed.

If you’ve been turned down for a mortgage from the bank, you may think that home ownership is out of reach. It isn’t.

Private lending market continues to be a major source of funds for many mortgage agents. A private lender is best described as an individual who lends his or her own money to a property owner, securing this loan by a mortgage.

Offering competitive rates and a range of terms, Investment Property Mortgage may be the ideal solution if
you’re considering:

  • Acquiring a rental portfolio of one or more properties to build income and equity
  • Converting your current home to a rental property
  • Purchasing a property for your child to live in

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