Commercial Mortgage in Edmonton, AB
A commercial mortgage in Edmonton is the financing behind a small apartment block in Oliver, a storefront with suites above on Whyte Avenue, or the clinic or shop your business wants to own outright. A building with 5 or more units is where most lenders switch from residential rules to commercial ones. On older Strathcona and Westmount buildings, lenders can look hard at vacancy and repairs, so we go through those numbers with you first and then take the file to lenders who know the area.
How long does it take to close a commercial mortgage?
Expect it to take longer than buying a house, because the lender usually orders a commercial appraisal, and it can add an environmental report or a building condition report, each from an outside firm. Write longer condition dates into your offer to give those reports time. We order what we can the day your offer is accepted, and you'll know early which reports your lender wants.
What does the lender want from my business if I'm buying our premises?
For an owner-occupied building, lenders read your company's last 2 years of financial statements and tax returns, and most want a personal guarantee from the owners. A business with steady profit after your own pay can borrow more comfortably, so share your statements with us before you make an offer in Highlands or Ritchie.
How does a lender value the building's rent?
Lenders look at the rent the building collects now, take off the costs to run it, and check that the remainder covers the mortgage with a margin. Many lenders also build in an allowance for empty suites, even on a building that's full today. On an older Strathcona or Westmount walk-up, pull together the last 2 years of repair bills, because the lender is likely to ask for them.
Can CMHC insure an Edmonton apartment building?
Canada Mortgage and Housing Corporation (CMHC) insures buildings with 5 or more units under MLI Select. A building earns points for affordability, energy efficiency and accessibility, it needs at least 50 points, and the top tier allows up to 50 years of amortization. Our MLI Select guide covers the details.
Book a free call about your Edmonton property
Send the address, the rent roll or your business statements, and we'll show you which lenders fit. You can book a free call online or reach us at 604-262-3500.
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
Is there a land transfer tax in Alberta?
Alberta doesn't charge one, so you'll pay Land Titles fees of $50 plus $5 for every $5,000 of value, which comes to $1,250 on a $1.2 million building, with the same formula on the mortgage.
Do you charge a fee on commercial loans?
Commercial deals can carry a broker fee, since the lender doesn't pay us on every one. You'll hear about it on the free first call and see it in writing before signing.
Can I refinance or renew a commercial loan with you?
We can do both, and the steps look a lot like a mortgage refinance in Edmonton or a mortgage renewal in Edmonton on a home, with the lender reviewing the building's rent again.