Types of Commercial Mortgages
Our brokers are always looking for innovative ways to minimize the cost of funds and meet other unique needs of the borrower on various commercial mortgage products as listed below:
Commercial Term Mortgages
A mainstay of Dominion Lending Centres Commercial’s financing business is negotiating long-term mortgages for apartment buildings, shopping centers, office buildings and industrial properties. Our brokers are always looking for innovative ways to minimize the cost of funds and meet other unique needs of the borrower such as limited guarantees, funding prior to lease-up and the fixing of interest rates prior to the completion of development projects. Our institutional clients provide the most economical long term financing in the marketplace on both conventional and CMHC insured product.
CMHC Insured Mortgages
Dominion Lending Centres Commercial are experts at securing mortgage financings direct from CMHC. These insured financing offer considerable savings to the borrower in that it often offers a much lower overall cost to borrowing.
CMHC will insure the following types of construction loans:
- High-rise & mid-rise condominiums
- Freehold properties (single family home developments, townhouses etc.)
- Apartments/condominiums to be built for rental purposes
- Retirement & Nursing home developments
- Mixed use property development, where the residential component represents at least 80% of the overall project.
- Student housing developments
Dominion Lending Centres Commercial has arranged construction financing for some of the largest projects in the marketplace. Our expertise in construction financing extends to both conventional loans and those insured by Canada Mortgage and Housing Corporation.
Advantages to Construction Financing with DLC Commercial:
- Utilize the commercial expertise of the largest mortgage brokerage company in Canada
- Secure a flexible product that enables the payment options you need to maintain a manageable cash flow throughout the various phases of building
- Access construction mortgage products nationwide — city or rural
- Interest only, open mortgage, with ability to lock in to the top fixed-rate mortgage available at the time construction completes
We provide financing for commercial real estate projects including office buildings, retail centres, industrial and warehouse properties or multi-unit residential development, for land or property acquisition, construction and inventory financing.
Construction mortgages are available for tenanted and speculative development projects. Construction financing can include soft and hard costs. Our construction mortgage loans are typically for a term of 12 to 36 months. Partial disbursements or draws are funded on a scheduled basis throughout the construction process.
We work with our clients through their project’s selling process, or to secure a long term commercial mortgage upon completion. Understanding the local real estate market, its economics and trends, combined with a strong network of commercial lenders across Canada allows our commercial lending team to provide our customers with the most competitive financing available for your commercial real estate construction project.
DLC Commercial has in-house funds for mezzanine and secondary financing to suit our clients’ needs. In some cases, we are able to fund up to 100% of the costs for a project! This access to in-house funds and financing across Canada allows us to respond quickly to market demands and client needs. Whether it’s a small commercial term deal or large construction facility we have the ability to provide the funding our clients’ needs.
Dominion Lending Centres Commercial deals with a number of institutional lenders across Canada, including: chartered banks, life insurance companies, pension funds, mortgage funds and governments. All of these sources invest in mortgages and, just as with residential mortgages, commercial mortgages come in many shapes and sizes. Traditional commercial mortgages can be both adjustable-rate and fixed-rate; they can also come in the form of interest-only loans. These types of mortgages can be made available to borrowers who are able to show that a property’s future profits will grow over time. Interest-only commercial mortgages make it possible to make much smaller monthly payments on the loan for a specific period of time.