A Commercial Mortgage is a mortgage secured by commercial real estate, such as:
apartment buildings, office buildings, residential/commercial strata, shopping plaza/retail strata, student housing, retirement homes, industrial buildings and warehouses, as well as hotels and motels.
The purpose of a commercial mortgage can be for purchase, renovation, refinancing, equity takeout, debt consolidation, etc.
All commercial mortgages at least have one thing in common, the real estate as underlying assets needs to be income-producing.
Only on an exceptional basis will a lender take a commercial mortgage without income verification.
Business loans are loans for the purpose of business operation, acquisition, and expansion, which could be secured or unsecured.
For secured business loans, securities could be real estate or other fixed assets, such as equipment and inventory. The latter is often referred to as working capital loans.
Most unsecured business loans are small and revolving in nature, such as business credit cards and line of credits. Larger unsecured business loans can be lent based on accounts receivables and cash flows.
More complicated business loans are mezzanine loans, which are not traditional loans but a hybrid of debt and equity, depending on its terms and conditions and how events unfold.
Unlike commercial mortgages, construction mortgages and land loans don't have income-producing properties.
On the contrary, they (will) need a large sum of capital input in a period of time before any positive cash flow would be generated.
Therefore, an exit strategy and/or project feasibility studies are key to the success of a construction mortgage/land loan.
in addition to an exit strategy/feasibility study, a lender may require substantial evidence in place, such as presales and/or prelease.
Why U Wealth Financial?
U Wealth Financial is the expert in commercial lending in Greater Vancouver Area, BC, Canada.
We do all kinds of commercial mortgages and business loans, but only commercial mortgages and business loans. We serve investors and business owners.
Unlike residential mortgages that are fairly standard, commercial mortgages and business loans are very unique. underwriting decisions and structurings are often done case by case. That's why investors and businesses need mortgage professionals at U Wealth Financial to present their case very well to the right lender and negotiate with the lender on their behalf and for their benefits, not just the best mortgage rates but also other terms and conditions.
Our advantages are:
- Diversified Lending channels: in addition to chartered banks, we deal with credit unions, financial corporations, MICs, private equities, and private mortgage investors
- Maximize your borrowing capacity;
- Lower rates for you;
- CPA to review your financials and prepare presentation;
- Fast turnaround;
- Easy Application.
We are always here for your needs in commercial lending, no matter how complicated.
Start with a phone call to 778-803-9955, talk to us about your business needs and goals. In return, we give you expert mortgage advice and sensible options for mortgage rates and terms, then we work hard to get your mortgage approved and funded