Here’s why you need a commercial mortgage broker.
Many Canadians consider purchasing an investment property a good option. However, a few things are different from a residential purchase. For example, you’ll need to consider the number of units in any building and decide whether you will occupy any space in them.
These are the two significant factors a commercial mortgage broker can help you with. We can walk you through everything you need to know, including the different types of properties that generate income. Our priority is ensuring you get the best property for your requirements.
- The first is a residential investment that an investor could rent out or fix up and resell. Some common ones include townhouses, cottages, apartments, condominiums and single-family homes.
- Office buildings and retail stores are commercial properties. Canadian lenders usually consider any building with five or more units a commercial investment.
- A building that falls under both of these categories is considered mixed-use. An example is a street-facing retail store with an apartment on the floor above it.
Having a commercial mortgage broker on your side can help you with other decisions, like how much down payment you’ll need. For example, as of 2010, the Canadian requirement is a 20% down payment on non-owner-occupied investment properties.
It’s important to remember that if you put down anything under 20% on one of these investment properties, your maximum amortization will be 25 years. Using a commercial mortgage broker is about leveraging their experience. We can help you with the details. If you put down 20% or more, you can qualify for up to a 35-year amortization period.
Looking for an Excellent Commercial Mortgage Broker You Can Count On?
OMJ Mortgage Capital is a broker with experience. Contact us today to learn more. Getting professional help when making a significant investment is always a good idea. We bring over 75 years of experience to every project that we work on.
