A Mortgage Planners commercial broker is the direct link between financing your semi-commercial building and the lending financial institution. Thanks to our professional experience and our overall knowledge of the commercial mortgage market, we are familiar with the various services offered by financial institutions and knowledgeable about the services that are best suited to your needs, including the best available financing terms and conditions.
Financing a semi-commercial building may be done conventionally or through CMHC. In order to qualify for a CMHC-insured loan, the surface area of the non-residential portion must not exceed 30% of the gross building area and the value of the non-residential portion should not exceed 30% of the loan’s value. To determine the building's value, various criteria are considered for each source of revenue including both the capitalization rate and the debt service ratio. Some CMHC terms are applicable to conventional financing, i.e., limiting the maximum amortization period to 25 years.
The main criteria to consider are as follows:- Building location
- Age and physical condition of the building
- Apartment classification
- Rental relative to the market
- Quality and duration of commercial leases
- Tenant stability
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