What are Commercial Mortgage Rates in Canada?
When any individual is applying for any type of mortgage, the mortgage interest rate is one of the things at the forefront of their minds. But when it’s a commercial mortgage that you’re after, it can be quite confusing. Commercial mortgage rates are usually higher than those found on residential mortgages, and they take many different factors into the equation to, not just the credit rating of the applicant. In fact, credit doesn’t often come into the equation when someone is applying for a commercial mortgage, and so it rarely affects the commercial mortgage rates in Toronto.
Commercial mortgage rates in Canada are generally 0.75% to 1.5% higher than those on residential mortgages, and sometimes even more than that. Most commercial mortgage rates in Toronto are fixed rates, meaning that you will have the same rate for the life of the loan. This is often beneficial to business owners, as they can count on the same expenses month after month, and make sure that they are able to make their commercial mortgage payments. Most Canadian commercial mortgage rates are fixed for 3 to 10 years, so you will have the option to switch if you’re unhappy with the payments, or extend if it’s working out perfectly for you.
If you need to obtain a second commercial mortgage, which will be second in line to the first mortgage, the commercial mortgage rate in Toronto will be even higher. This is because should a business owner default on the loan, the first mortgage will need to be repaid first and so, it carries a much higher risk to the lender.
If you want to know more about commercial mortgage rates in Canada, give us a call today. We know all the commercial lenders in Canada, and we work with those that offer only the best commercial mortgage rates in Toronto, and the rest of the country!