Commercial Mortgage in Calgary, AB
A commercial mortgage in Calgary finances a building that earns rent or houses your business, like a walk-up in the Beltline, a mixed-use property in Inglewood, or a warehouse bay your company wants to stop leasing. If you live in BC and you're buying your first apartment building in Alberta, a lender will look hard at who manages the property from a province away, and naming a property manager up front can speed up the file, so we build that in from the start. We're licensed in both provinces, so the same advisor handles your BC equity and your Alberta purchase.
What does it cost to close on a commercial building in Calgary?
Alberta has no land transfer tax, which is a big difference for buyers coming from BC. You'll pay Land Titles registration fees instead, at $50 plus $5 for every $5,000 of the property's value and the same formula on the mortgage. On a $2 million building that's $2,050 to register the transfer, so set aside the cash before your conditions come off. Budget for the appraisal and your lawyer's fees on top of that.
How long does a commercial purchase in Calgary take?
Plan for more time than a house purchase, because the lender usually orders a commercial appraisal and can ask for an environmental report as well. Ask for longer condition dates in your offer, and we'll order the appraisal as soon as the seller accepts so the reports come back before your deadline.
How do lenders decide how much I can borrow?
The building's net income sets the limit. Lenders take the rent, subtract property tax, insurance, repairs and management, then make sure that number covers the mortgage payments with a cushion. If the current rents in Bridgeland or Kensington are below the market, the building can qualify for a smaller loan than its price suggests, so bring the rent roll and leases to the first call and we'll run it with you.
Can I get a longer amortization through CMHC?
Yes, on buildings with 5 or more units, through the MLI Select program from Canada Mortgage and Housing Corporation (CMHC). Points come from affordability, energy efficiency and accessibility, at least 50 are needed, and the top tier reaches 50 years. Our MLI Select guide explains how to score a building.
Start your Calgary building purchase with a call
Tell us the address, the rents and who'll manage it, and we'll show you what lenders are likely to approve. Book a free call, or phone 604-262-3500, the same number we use for clients in both provinces.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc. (operating as BRX Mortgage), licensed by the Real Estate Council of Alberta to deal in mortgages.
Frequently asked questions
Will I pay a broker fee?
On some commercial loans, yes, because the lender doesn't pay us on every commercial deal. We'll say so on the free first call and put any fee in writing before you sign.
Can I pull equity from my BC home to buy in Calgary?
Often you can, through a refinance of your BC home. If you already own property here, a mortgage refinance in Calgary can raise the down payment the same way.
What if I'm selling another property first?
Bridge financing in Calgary can cover the gap with some lenders when your sale closes after the purchase.