Mortgage Blog

Commercial Mortgage Solutions in Calgary - What You Need to Know.

May 3, 2023 | Posted by: John Antle - Trusted Calgary Mortgage Solutions

What is a Commercial Mortgage?

A commercial mortgage is a loan used to purchase or refinance a commercial property. These properties can include office buildings, retail spaces, warehouses, and more. Unlike residential mortgages, which are based primarily on the borrower's personal credit score and income, commercial mortgages are evaluated based on the property's value and income potential.

Benefits of Commercial Mortgages

There are several benefits to obtaining a commercial mortgage for your business:

• Diversification of assets: Owning a commercial property can provide a valuable diversification of assets for your business.
• Stable income stream: If you rent out the commercial space to tenants, you'll receive a stable income stream that can help cover the cost of the mortgage and generate additional revenue for your business.
• Tax deductions: Interest payments on your commercial mortgage are tax-deductible, which can reduce your overall tax burden.
• Control over the space: Owning your commercial space gives you more control over the space and allows you to make improvements or modifications to suit the needs of your business.
• Opportunities for appreciation: Commercial properties can appreciate in value over time, providing an opportunity for long-term financial growth.

Types of Commercial Mortgages

There are several types of commercial mortgages available to business owners in Calgary, Alberta:

• Traditional commercial mortgages: These are similar to residential mortgages and typically require a down payment of 20-30% of the property's value.
• Small Business Administration (SBA) loans: These are government-backed loans designed specifically for small businesses. They typically require a lower down payment than traditional commercial mortgages.
• Commercial bridge loans: These are short-term loans designed to provide financing until a long-term solution can be found.
• Construction loans: These are used to finance the construction of a new commercial property.

How to Obtain a Commercial Mortgage

Obtaining a commercial mortgage can be a complex process, but there are several steps you can take to increase your chances of success:

1. Gather your financial documents: This includes tax returns, bank statements, and financial statements for your business.
2. Research potential lenders: Look for lenders who specialize in commercial mortgages and have experience working with businesses in your industry.
3. Prepare a business plan: Your lender will want to see a detailed business plan that outlines your company's goals and financial projections.
4. Get pre-approved: Getting pre-approved for a commercial mortgage can give you a better idea of how much you can afford to borrow and can help streamline the application process.
5. Submit your application: Once you've gathered all the necessary documents and have been pre-approved, you can submit your application to the lender.
6. Complete the underwriting process: The lender will evaluate your application and may require additional documentation or information before making a decision.
7. Closing: If your application is approved, you'll move on to the closing process, where you'll sign the necessary paperwork and receive the funds for your commercial mortgage.

Why Choose Our Commercial Mortgage Solutions?

We specialize in providing customized commercial mortgage solutions for businesses in Calgary and across Alberta. Our experienced team of mortgage professionals will work with you to understand your unique needs and goals and develop a financing plan that fits your budget and timeline. We offer competitive rates and flexible repayment terms, and our streamlined application process makes obtaining a commercial mortgage easier than ever. Contact us today to learn more about how we can help you grow your business.

Conclusion

If you're a business owner in Calgary, Alberta, a commercial mortgage can be a valuable tool for achieving your long-term goals. Whether you're looking to purchase a new property or refinance an existing one, a commercial mortgage can provide the financing you need to make it happen. By working with us, you can rest assured that you're getting the best possible financing solution for your business. Contact us today to learn more and take the first step towards a brighter future for your business.

Back to Main Blog Page