Commercial Income Properties Financing in Montreal, Laval and Surrounding Areas
The financing of commercial income properties is based mainly on the economic value of the property but also on the following aspects:
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The location
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The quality of the tenants
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The remaining term of the leases
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The type of lease in force (gross, net or triple net)
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The number of years that tenants occupy the premises
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The average vacancy rate of the building
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The physical appearance of the building and maintenance over the years
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Your experience as a property manager
The documents required by financial institutions are:
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Your personal financial information
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Your corporate financial statements
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Purchase offer and appendices
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Confirmation by bank report statement for your down payment (3 months)
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A market valuation less than 2 years old
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An environmental assessment of less than 3 years (depending on the loan amount and risk)
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An inspection report (sometimes required)
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A structural report (sometimes required for buildings in poorer physical condition)
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The renovation history of the building
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The tenants
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Copies of leases and renewals
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A statement of income and expenses of the building
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The municipal and school tax statement
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The annual statement of energy expenses assumed by the owner
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Copy of the building insurance policy
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A certificate of location less than 10 years old
Regarding the interest rate, you can choose a term that can vary between 1 year and 10 years. The rate for this type of financing is not displayed by banks. It will be defined according to the risks incurred by the financial institution based on the information provided.
The bank will also charge an application fee and possibly an annual review fee, which we will negotiate for you.
