Discussing mortgages is not always a fun topic, but unfortunately, it may be a necessary one. Without mortgages, most Canadians would not be able to purchase their home, let alone their business property. A mortgage is a type of loan that you can take out to buy land or property, such as your home.
A commercial mortgage is a loan that you can use to buy a property you intend to use for business. This could be an apartment building, storefront, even a parking lot. Whatever the property is, most banks and financial institutions offer mortgages for commercial or residential purposes.
If you are looking for an alternate option, there are many great private lenders as well that can often get you a lower interest rate. The problem is finding that lender. Thankfully, we’re going to discuss some lending platforms that can help you find the perfect commercial mortgage.
We’re going to take a look at the pros and cons ofCommercial Mortgages Canada, Loans Canada, Lending Loop,andReico. All of these platforms are great lending alternatives to working with banks directly. This is especially helpful for new businesses or those with bad credit.
If you are looking for the best commercial mortgage in Canada, keep reading!
Commercial Mortgages Canada
First on our list of the best commercial mortgages is one from Commercial Mortgages Canada. Commercial Mortgages Canada is a Canadian owned and operated brokerage. They offer the best commercial mortgages possible. As they have been around since 1990, they have helped numerous Canadians in every province find the best mortgage rates.
Let’s dive into the pros and cons of working with this Canadian brokerage to find the best commercial mortgage.
- They work with over 40 mortgage lenders and major banks. This means you have plenty of opportunities to get the best commercial mortgage.
- Customer service is great and can be reached via phone, email, or live chat.
- Interest rates are competitive and can start as low as 1.04%.
- There is a free commercial mortgage calculator on their website. With it, you can determine what your mortgage payments could be to see if you can afford to take out a commercial mortgage.
- It is possible to obtain a mortgage for a variety of commercial property types. This includes multi-family, office, retail spaces, industrial, hotels, land development, and construction projects.
- You can also work with a mortgage broker from their team to obtain commercial financing or second mortgages.
- Canadians from any province can work with this commercial mortgage broker.
- You can send in a free mortgage inquiry to the commercial mortgage broker team. They will then contact you within 24 hours to discuss your project.
- Free resources are available on the site. This includes info about commercial real estate opportunities, a breakdown of potential fees, and more.
- Canadians in the territories cannot work with this mortgage broker team.
- This brokerage works with traditional lenders and banks, so you may have trouble getting approved for a loan if you have poor credit.
Commercial Mortgages Canada is one of the best places to get a commercial mortgage for your property. The brokerage works with over 40 lenders and banks, so you are likely to get approved with great interest rates if you have a good credit score. If not, you may want to consider alternative lenders, such as the one we’ll discuss next.
Next on our list of the best place to find a commercial mortgage in Canada is Loans Canada. Loans Canada is not a brokerage but a lending platform. This means they match Canadians looking for a commercial mortgage to online lenders who can provide it. Loans Canada has been around since 2012 and has built up a great reputation. They can help Canadians find a wide variety of loans, such as auto loans or a line of credit.
Loans Canada will help you find great interest rates for your commercial mortgage as they work with a wide variety of lenders. Here are some more of the pros and cons of finding a commercial mortgage for your business property through Loans Canada.
- Mortgage rates from Loans Canada range from 5.49% to 25%, depending on your credit score.
- Loans and mortgages of up to $300,000 are available from Loans Canada lenders.
- You can easily apply online on the Loans Canada website. The entire mortgage process is done online as well; no need to spend your day in the bank.
- Once you are approved, you can receive your funding within 48 hours.
- You don’t need a good credit score to get approved for a commercial mortgage through Loans Canada.
- The Loans Canada website is user friendly and easy to navigate. If you are having trouble, though, look for the ‘contact us’ or ‘call us’ section. A friendly member of their customer support team will then help you.
- You can also find mortgage refinancing, second mortgages, residential mortgages, and more on Loans Canada.
- Lenders will charge a higher interest rate if you have bad credit.
- Only lenders that partner with Loans Canada will come up in your commercial mortgage search.
- Canadians in the territories cannot get a mortgage for their business property from Loans Canada.
Using Loans Canada is completely free, and you are not obligated to choose a lender they suggest, so why not check it out? This lending platform is a great way to “shop around” for the best deal for your business possible. It is a great way to see multiple mortgages at once to see what different lenders have to offer. Head over to Loans Canada to fill out the commercial mortgage application. It should only take you ten minutes or less. What do you have to lose?
Next on our list is a different type of lending platform called Lending Loop. Lending Loop is actually a peer to peer lending platform. They match small and medium-sized businesses to lenders that are willing to lend to them. Businesses can take out loans for any of their business needs. This includes purchasing their commercial property.
Lending Loop is a reliable platform that has been around since 2014. Since its inception, $70 million worth of loans and mortgages have been funded.
Here are the pros and cons of using this peer to peer lending platform to help fund your business.
- Business loans range from $5,000 to $250,000. If you have good collateral, you can also borrow up to $500,000.
- Loan terms are flexible, and you will not be penalized for paying off the mortgage early.
- Mortgage rates range from 5.9% to 26.50%.
- You don’t need to put down collateral to receive a loan or mortgage from Lending Loop.
- The application process for your mortgage is simple and can be done completely online within minutes.
- As lenders are alternative lenders, you can still get approved for a mortgage if your credit score is weak.
- Taking out a loan from Lending Loop to use for your mortgage can be less restrictive as terms, mortgage rates, and repayment terms are more lenient.
- If you do have a poor credit score, you can help raise it by making your payments on time as Lending Loop is connected to Equifax.
- Canadians from any province or territory can use Lending Loop.
- Lending Loop is not available to Canadians that live in Quebec.
- Your credit score must be above 600 to get approved for a loan for your business.
- Your business must also have been in operation for at least a year with annual revenue of $100,000.
- Financial documents for your business may also be necessary during the application process.
If you have never heard of peer to peer lending before, you may be hesitant to use Lending Loop. That’s completely understandable, but Lending Loop is completely safe and reliable. It is a great way for those with extra cash to invest in a small business. Similarly, it’s a great way for a small business to obtain funding for their mortgage without going through strict traditional lenders.
Once you post your business plan and how much funding you need for your mortgage on Lending Loop, it will be up for 30 days. Posting your mortgage request is totally free and easy. Head over to Lending Loop to get started or look for their ‘contact us’ section for more information.
Another great lending platform in Canada is Reico. Reico is a commercial mortgage and real estate resource for off-market property. Reico’s mortgage division helps Canadians find equity, private, or investment mortgage solutions. Reico prides itself on helping Canadians find the perfect mortgage, even if they have been rejected before.
Reico will take your personal information and information about your project to a lender themself. The lender could be a bank or private lender, depending on your mortgage needs and your personal information.
Let’s look at the pros and cons of applying for a mortgage with Reico.
- Reico can help you find a mortgage for your business regardless of the property. You can find mortgages for multi-family properties, parking lots, casinos, restaurants, and much more.
- Reico works with banks, credit unions, non-bank lenders, private commercial mortgage lenders, and private institutional commercial mortgage lenders. This means you will get the best mortgage rates possible.
- Construction financing and development financing is also available through Reico.
- You can typically receive your mortgage to purchase your business property within 6 to 8 days.
- Mortgages up to $5,000,000 are available through Reico.
- There is a lender fee, but it is only 1%.
- You can also apply for residential mortgages with Reico to keep all your finances in one place.
- Open or closed mortgages are available.
- Mortgage rates vary depending on the lender, your property, and your finances. The better your credit rating, the better the mortgage rates will be.
- Reico is a middleman between you and the lender rather than a lender themself.
- There is a prepayment penalty if you pay off your mortgage early.
- Mortgage rates start at 7%, slightly higher than other lending platforms.
- Most of the lenders only offer a first mortgage.
If your mortgage application has been rejected before and you aren’t sure why Reico can help. Reico helps Canadians apply for a commercial mortgage by approaching lenders on your behalf. Depending on your property and mortgage needs, Reico will approach a traditional lender, such as a bank, or alternative lenders.
Many mortgage applications get rejected due to a low credit score. Reico can still help you take out a commercial mortgage regardless of your credit score. Look for the ‘contact us’ section on their website for more information or to get started with your mortgage.
The Bottom Line
Although thinking about getting a mortgage for your commercial property can be stressful, it doesn’t have to be. When great lending platforms like the four we covered exist, applying for a mortgage is easy!
Each platform we discussed functions completely online, so you won’t even need to leave your house to obtain the funding you need. Most of the applications only take a few minutes as well. Just ensure you have your personal information and business’ financial information handy.
Many people stick to applying for a mortgage through their bank because it’s all they know. Lending platforms like the ones we discussed, however, often offer lower rates with less restrictive terms. Their eligibility requirements also tend to be less strict, so new businesses and those with bad credit can still apply for a mortgage.
INCOME.ca is here to help Canadians become more informed about their finances. So, If you want to learn more about mortgages or finances in general, head to our homepage. Alternatively, for more information on any of the lending platforms we discussed, head to their respective websites now.