MCAP Blog

If you’re looking to add value to your building – and need capital to make that happen – you have a few financing options you can consider. Whether you’re making repairs, renovations or energy efficiency upgrades, you can increase the value of your property and the return on your investment by leveraging your commercial property mortgage.

If the term on your commercial mortgage is expiring within the next year, now might be a good time to start thinking about renewal. While you may have been through the renewal process several times before, today’s fluctuating interest rate environment may have some impact on your timing, approach and next steps this time around. Getting ready for your renewal and discussing available options with your lender now can help you choose the best mortgage option for your financing, cashflow and future project needs.

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.