Commercial mortgages can be tricky things for banks to deal with. There are often multiple units involved, a large amount of capital, and from the bank’s perspective, a lot of risk. Often too much risk. Because of this, those looking for commercial mortgages are all too often turned down by the banks and they are forced to turn to private mortgages. Just as in residential mortgages, a private mortgage can fill the gap when traditional financing cannot be obtained. However, this isn’t always easy either.

Due to the very nature of commercial mortgages and how large they can be, investors are sometimes hesitant to put so much of their investment portfolio into just one deal, and maybe even two. Unlike the residential market where an investor can diversify their funds into many different deals and transactions, that’s just not possible in many commercial deals. That is, unless you happen to be in Ontario.

Ontario has a large amount of different commercial and industrial areas; and entire major cities that also bring some stability to the market – both features that are very attractive to investors.

Joe Walsh, a broker for private investors in Ontario says, “In Canada, the Ontario market is primarily sought after due to its size and market stability. Serious lenders can usually assess a deal in a week or so and fund within 30 days provided everything required for funding is in order.”

However, he also says that smaller, outlying areas are also starting to see the popularity of private commercial mortgage deals, and that they’re also beginning to enter the market.

“Many of the other provinces are getting interest as well for these types of opportunities,” says Walsh. “And outlying areas are seeing more interest as well albeit with some amount of premium attached.”

All of it is good news for business owners looking to invest in their own building or office space, as it makes lending more available to them – and at a time when major lenders seem to continue closing their own doors.


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