Commercial Financing | Swarn Sidhu | Mortgage Broker Surrey

PROFESSIONAL COMMERCIAL FINANCING IN BC

MEET YOUR COMMERCIAL FINANCING SPECIALIST

If you are about to enter into a commercial financing obligation, you need to make sure that you know the ins and outs of what you are signing up for. And what better way to do so than to seek the help of a financing specialist who would know all about the market? This is why our very own commercial mortgage maestro - Swarn Sidhu is here for. His guidance and insights into commercial financing will definitely help you out to make the choices that suit you best.

Commercial mortgages are quite similar to residential mortgages, but the kind of collateral offered is not the same. For a residential mortgage you end up using a residential property as a guarantee, but for commercial mortgages, you offer commercial assets as the form of guarantee. However, the procedure to obtain these mortgages are significantly similar to each other, hence, you do not have much to worry about.

Commercial Mortgages VS Residential Mortgages

A reliable mortgage company will offer both commercial and residential financing. Let us take a look at how these types of financing may actually differ from one another.

Commercial mortgages are for businesses while residential mortgages are for individuals
The liability falls upon the business as a separate legal entity, not to an individual
Mortgage companies will assess the financial stability of the business, not the individual
Analyzing businesses take up quite a bit more time and resources, unlike for residential mortgages

Should You Apply For A Commercial Financing Loan?

If you are trying to acquire a property for commercial purposes, a commercial mortgage might be feasible for you. The following are a few occasions for which a mortgage company will approve your request for financing.

To repair or renovate a commercial property
To develop the new or existing property
To acquire new workspaces for your business entity
For business investments

Do You Qualify For A Commercial Mortgage?

Similar to residential mortgages, businesses also need to be deemed creditworthy in order to qualify for a commercial mortgage. For this, your business should show the potential to pay back your mortgage company, on time. In case you fail to do so, the mortgage provider will have the power to seize the assets you signed as collateral.

How Do You Assess Credit Worthiness?

Your credit rating plays a key role in this. If you have a good credit rating and can prove that you can meet adequate obligations in the long run, you have a shot at getting commercial real estate mortgages. You might also have to work on financial projections and predictions to convince the mortgage company that you are engaged in a lucrative industry that has the potential to grow.

How Much Can You Obtain Through Commercial Financing?

The value of your mortgage depends on how much you can put in as a down payment, the present value of the commercial property for which the financing is required, and the loan to value ratio. As indicated by the term itself, the latter is calculated as the ratio between the amount of loan required and the value of the asset which is being mortgaged.

Commercial Mortgages And Interest Rates

The durations of commercial mortgages are typically low when compared to those of residential mortgages, but they have higher interest rates. This is mainly due to the fact that the value of commercial mortgages are usually much greater than residential mortgages. Hence, the lenders do not want to incur a greater cost on the loan than what they receive as income. While the interest rates of some commercial financing options are fixed, they may also be variable or capped depending on your mortgage company.

WHY SHOULD YOU CHOOSE SWARN SIDHU

For Expertise on Commercial Financing?

Multiple years of experience in the market
Worked with several hundreds of clients overtime
Flexible working hours
Detailed advisory services for all types of mortgages
Continuously up-to-date on the changes in financial policies and regulations

Getting Started With Our Commercial Mortgage Expert

If you are looking to hire the services of an expert in commercial financing, all you need to do is make an appointment with Swarn Sidhu. To do so, you can contact our hotline, drop us an email, or reach us out on our online platforms.