MCAP Blog

As a developer, you will be well aware of the difference between a construction loan and a commercial mortgage. Your construction loan is designed to cover the cost of your build from start to finish, providing funding to purchase materials and pay contractors. A commercial mortgage, meanwhile, is your long-term financing solution post completion.

When considering your options for a commercial mortgage, there are many factors to think about. How much funding you require, what the interest rate will be, how long you intend to hold your commercial real estate investment, what are the required documents for your mortgage application, and how long the overall process will take. Another key decision you will need to make is what term to select.

Hasnain Asghar is a team member in our Toronto office, and we had the pleasure of asking him a few questions about his experience and his team in a recent conversation.

If you’re in the market to purchase a commercial property, you may come across what’s known as an assumable mortgage. An assumable mortgage means that the purchaser can take over the existing loan when they purchase the property from the seller. Depending on the situation, assuming a commercial mortgage can be advantageous for prospective buyers and sellers.

If you have ever purchased a residential property, you know how much paperwork is involved. Getting a commercial mortgage is a whole different ballgame, with a long list of documents, statements, and reports required. This is because when you apply for a commercial mortgage, you’re not only required to demonstrate your eligibility for a sizeable loan, but you also need to provide detailed information about the property including its purpose, condition, and the income it generates.