Commercial mortgages with 0% and 15% down payment
May 24, 2020 | Posted by: Alex Vinarski
We have special programs for professionals (doctors, chiropractors, veterinaries, accountant etc) that allow to buy commercial property for office use with 0% down payment.
With CMHC insured financing we can entertain up to 85% of the lending value ( required down payment amount would depend on the stabilized cash flow of the property and what lender / CMHC assess as the value of the subject property) with the associated costs of $150 per unit and a premium of 4.50% of the loan amount at 85% (premiums are scaled to the LTV e.g. at 75% the premium is 2.50% of the loan amount). All CMHC fees and premiums can be added to the loan amount and capitalized over time. Current approximate interest rates are challenging to quote at this time due to the current market volatility and liquidity issues, but would be around the 2.75-3.0%% +/- range for 5 years / 25 year AM (note: up to 40 year AM’s are also available subject to the remaining economic life of the property and additional CMHC premium costs). A satisfactory AACI Appraisal Report that contains and income approach to value, comparison approach to value and states the remaining economic life of the property; would be required prior to submitting the application to CMHC.