Topic: Commercial Mortgages

Renewed strength in the energy industry has resulted in higher demand for new office developments in Calgary, according to a report from Cushman & Wakefield.

With the Canada Mortgage and Housing Corporation’s multi-unit insurance coverage, a commercial investor can attain up to 85 per cent financing toward their commercial purchase.

Construction loans and land development financing is available to fund capital costs. Construction mortgages can provide up to 75 per cent financing.

The capitalization or ‘Cap Rate’ is a valuation used to give commercial buyers a more inclusive estimate of a commercial property’s value as oppose to, say, a gross rent valuation.

Private commercial lenders, particularly in the commercial mortgage market, are increasingly becoming the go-to for hard-to-fund commercial projects.

Foreign lenders, outside of large banks and insurance companies, are upping the commercial financing available for non-prime commercial borrowers.