Commercial Mortgage in Surrey, BC
A commercial mortgage in Surrey covers the purchase or refinance of property that earns rent or houses a business, such as a 6-suite rental in Whalley or the unit your company operates from in Newton. If you're buying your own premises after years of paying rent, most lenders will look at your business's books as closely as the building, so we start by reading your financial statements the way a lender will. That way you know what you can borrow before you commit to a property near Surrey Central or King George.
Can my business buy the building it operates from?
Yes, and lenders treat an owner-occupied purchase as a loan to the business as much as a loan on the property. They'll want your company's last 2 years of financial statements and tax returns, plus a personal guarantee from the owners with most lenders. Strong, steady profit after you pay yourself can do more for your approval than a big down payment with some lenders, so talk to us before your accountant files this year's numbers.
How long does a commercial mortgage take in Surrey?
Commercial files take longer than a home purchase because the lender usually orders a commercial appraisal and can ask for an environmental report or a building inspection on top of it. Those reports come from outside firms, so ask for longer condition dates in your offer to give everyone room to work. We order what we can as soon as you're accepted, and you'll know which reports your lender wants early on.
Will CMHC insure a rental building in Surrey?
Canada Mortgage and Housing Corporation (CMHC) insures rental buildings with 5 or more units through its MLI Select program. Buildings earn points for affordability, energy efficiency and accessibility, and they need at least 50 points to qualify. The top tier can reach an amortization of up to 50 years. A newer building near SkyTrain in Guildford or Fleetwood can score differently from an older one in Cloverdale, so we run the points before you settle on a price. Our MLI Select guide lists what earns points.
Talk through your Surrey property with us
Bring your last 2 years of business statements, or the rent roll if it's a rental, and we'll show you what lenders are likely to offer. Book a free call, or call 604-262-3500 to talk it through today.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Do I pay a fee for commercial financing?
A commercial deal can carry a broker fee, since lenders don't pay us on every commercial loan. You'll know on the first call whether to expect one, and any fee is set out in writing before you commit. That first call costs nothing.
Can I take equity out of my house to help with the down payment?
Often you can, and a mortgage refinance in Surrey is the usual route, with up to 80% of your home's value available in most cases.
What happens when my commercial term ends?
Commercial terms come up for renewal much like a home loan, and the same shopping logic from a mortgage renewal in Surrey applies, so start the conversation well before the maturity date.