Owner Occupied Properties - Commercial financing
- Owner-occupied referred to owner-user commercial real estate is typically any commercial property that is owned by the business that operates out of that property
- Up to 90% of the property’s purchase price.
- The most obvious requirement of owner-occupied financing is that the owner must operate their business out of the property in question.
- The owner must typically use at least 51% of leasable space to generate income through their own business
- The operating company’s profitability and cash flow is assessed
- Favourable borrowing rates and lower expenses associated with insurance coverage, since the loan structure is considered less risky
- A lower down payment – we have seen scenarios where 100% financing is available
We finance the following Owner-occupied commercial real estate
- Office (such as office buildings or office condos)
- Industrial (including warehouses and manufacturing facilities)
- Retail
- Medical Building
- Health care
- Special purpose
Doctor Finance through his extensive industry has been nominated as one of the Top Commercial Brokers for 6 years in a row from 2015, 2016 and 2017, 2018, 2019, 2020. With more than two decades of experience in the commercial mortgage industry and a team of ex-commercial bank managers we are dedicated to better serving our clients.
We ensure full support of your dealings with the various professionals involved and every step of the due diligence process such as appraisal, environmental site assessment, building inspection, legal and closing process.
Financing owner-occupied building vs. investment property
| Owner-occupied property | Investment property | |
|---|---|---|
| Leverage | Up to 100% of the property’s purchase price can be financed. | Varies, but typically available up Max 75% |
| Cash flow requirement | Operating Business’s cash flow | Cash flow analysis of the property |
| Docs required | Operating business last 2 years financial Statement | Income and Expense of Prope Rent Roll |
Industrial
Owner Occupied
80% Loan to Value
Toronto Ontario
Office Unit Professionals
Owner Occupied
70% Loan to Value
Markham Ontario.