Experts in Financing Buildings in Montreal, Laval and Surrounding Areas

Name: Peter Tsagarelis - Planiprêt Commercial
Address: 425, Mathers Avenue, Bureau 102, Saint-Eustache, Québec, J7P 4C1, CA
Telephone: 514-757-4117

We specialize in financing multi-unit apartment buildings in Montreal, Laval and all across the province of Quebec. Our services include financing buildings with more than five apartments and semi-commercial buildings (buildings that have a commercial component) for purchase, refinance, renewal, renovation, new construction and optimization.

The percentage of funding depending on the financial institution and could be up to 85% of the purchase price or economic value, the lower of the two.

With conventional financing, amortization will be limited to 25 years (sometimes 30 years under certain exceptions). While a loan insured by CMHC, amortization may vary from 30 years for most buildings and up to 40 years for new buildings.

Multi-unit Buildings With 5 Or More Dwellings

The financing of multi-unit buildings is based on the assessment of the economic value of a building. However, several other aspects are important, including:

The location of the building
The size of the unit (5 1/2, 4 1/2, 3 1/2 ...)
The number of years that tenants occupy the premise
The average vacancy rate of the building
The physical appearance of the building and general condition
Your management experience
Available parking spaces
Different ratios like the overall discount rate (TGA), the gross income multiplier (MRB) and the net income multiplier (MRN). (The price per door may be taken into account in certain situations)

The percentage of funding varies by the financial institution and could be up to 85% of the lower cost or economic value.

Under conventional financing, amortization will be limited to 25 years (sometimes 30 years under certain exceptions). Under a loan insured by CMHC, amortization may vary from 30 years for most buildings and up to 40 years for new buildings.

The documents required by financial institutions are usually:

Your personal financial information (personal balance sheet, tax report, notice of assessment, proof of assets etc.)
Your company's financial statements
The purchase offer and the annexes
Confirmation with a bank report statement for your down payment (3 months)
A market appraisal report of less than 2 years old for conventional loans and less than 6 months for CMHC insured loans
A phase 1 environmental assessment of less than 1 year
An inspection report (sometimes required)
A structural report (sometimes required for buildings in poorer physical condition)
The renovation history of the building
Rent roles
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 varying between 1 year and 10 years. However, if financing is provided by CMHC, you will have to choose a minimum first term of 5 years (3 years on an exceptional basis). The rate for this type of financing is not displayed by most banks. The interest rate will be defined according to the risks incurred by the financial institution and according to the information provided.

The bank will also charge an application fee and possibly an annual review fee, which we will negotiate for you.

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