Generally, to qualify for conventional commercial mortgage financing, an owner-occupied or investment property must be income-producing and located in an active resale and rental market where the property is readily marketable, such as a major urban market or within a community with a minimum population of 100,000. Some lenders are flexible on location and community size.
Mortgages require a current appraisal from an AACI-accredited, lender-approved appraiser, plus a Phase 1 environmental report. Variable- and fixed-rate options are available on terms up to five years (10 years for CMHC-insured multi-unit residential properties) and amortization periods up to 20 years (CMHC-insured up to 35 years).
If your property falls short of meeting all these conditions, private financing (at a higher interest rate) may be available. At DLC, we have multiple sources of private funding for a short or medium term.