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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:

  • The location

  • The quality of the tenants

  • The remaining term of the leases

  • The type of lease in force (gross, net or triple net)

  • The number of years that tenants occupy the premises

  • The average vacancy rate of the building

  • The physical appearance of the building and maintenance over the years

  • Your experience as a property manager


The percentage of funding varies by the financial institution and can vary between 65% and 85% of the economic value or market value, the lower of the two.


100% financing and be obtained under certain conditions for owner-occupant.


The amortization period  may vary depending on the risk, the quality of the tenants and the term remaining on the leases. It is usually between 15 and 25 years.

The documents required by financial institutions are:

  • Your personal financial information

  • Your corporate financial statements

  • Purchase offer and appendices

  • Confirmation by bank report statement for your down payment (3 months)

  • A market valuation less than 2 years old

  • An environmental assessment of less than 3 years (depending on the loan amount and risk)

  • An inspection report (sometimes required)

  • A structural report (sometimes required for buildings in poorer physical condition)

  • The renovation history of the building

  • The tenants

  • Copies of leases and renewals

  • A statement of income and expenses of the building

  • The municipal and school tax statement

  • The annual statement of energy expenses assumed by the owner

  • Copy of the building insurance policy

  • 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.

Contact Details

Peter Tsagarelis - Planiprêt Commercial
425, Mathers Avenue, Bureau 102,
Saint-Eustache, Québec  J7P 4C1

 

Phone

514-757-4117

Email

ptsagarelis@planipret.com

Service Areas

  • Montréal

  • Laval

  • Sainte Thérèse

  • Terrebonne

  • Brossard

  • Longueuil

  • Province de Québec

Opening Hours

Monday - Friday: 9:00 AM - 5:00 PM

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