Multi-Units and apartment buildings

Many people dream of owning their own apartment complex—or multi-unit building. Your dream might be just a few units or possibly hundreds of them. Whatever you are looking to achieve, OMJ commercial mortgages can bring you together with the right lenders to help you meet your goals. OMJ Commercial Mortgage Specialists can find the best terms—up to 30 years—and will work to close your deals quickly and smoothly. An OMJ Mortgage Specialist can ensure you have the best chance of securing mortgage funding for your next real estate venture.

How to qualify for a multi-unit and apartment building loan

Qualifying for a loan changes depending on how many units are in the apartment or complex you’re considering. Up to 5-unit complex mortgages can qualify under the usual residential mortgage programs. Multi-unit buildings and apartments that have more than 5 units in them require commercial financing—a more involved process than a traditional mortgage.

What the lender needs to know

Like any real estate loan, the lender considers the location, age and overall condition of the property you might be considering. In addition, the lending party looks at the value of the real estate investment: does it offer good value? What kind of return does the complex bring? What is its future potential? The lender will also want to know the current rental rates for each unit and look for an income and expenses report for the property. Often, a 2-year history of the income building is required.

Making sense of the complex and often changing processes surrounding the purchase of an apartment building can be challenging. Apartment mortgages often come under closer examination by lenders as well. An OMJ Commercial Mortgage Specialist can guide you through the paperwork, analyze financing options quickly, and help you choose the best terms and conditions for your commercial mortgage. Their expertise will save you money, simplify the process, and ensure all the right details are included—to maximize your chances of securing the funds you need at a price you can afford.

Types of financing for 5+ multi-unit residential buildings

There are two kinds of financing that you might consider for multi-unit residential buildings. First, there’s the Canadian Mortgage and Housing Corporation (CMHC)-insured mortgage. CMHC mortgages are available for as much as 85% of the appraised value of the property. Your own credit rating will determine how much risk this lender will take on.

The second kind of financing is non-CMHC insured mortgage. Depending on your credit history and rating again, the maximum mortgage available is as much as 85% of the appraised value of the property. You can learn more about CMHC mortgages from their site—

http://www.cmhc-schl.gc.ca/. Read more about owning multi-unit residential buildings from our blog.

Which kind of mortgage should you choose?

How you finance your residential building is a complex decision that takes in many factors including your cash flow, credit history, future plans and a number of other considerations. Talking to an  OMJ Commercial Mortgage Specialist can help you work through these questions to make the best loan and mortgage decision for your venture. Or read more about mortgages on our blog.