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Ontario Real Estate Loans for Real Estate Acquisition

The purchase of real estate is an essential part of growth and expansion of any business. A COMMERCIAL real estate loan in Ontario Canada is often the first choice to finance purchasing another building to be used for storage, expansion, or owner occupation.

Almost any type of legitimate business is eligible for financing, including manufacturing, wholesale, service, professional service or retail. In most cases applicants are required to provide approximately 10 percent of the total real estate cost. However, with low-interest rates and a long-term 10 to 20 year lifetime, our Ontario commercial real estate loans are very affordable, particularly for small businesses.

Construction Loans in Ontario

We offer short-term (3 years) construction loans to finance development projects. These loans are secured by a mortgage and are used to cover development and building construction. The funds are disbursed as needed or as parts of construction are completed. Disbursement can also occur according to a prearranged schedule. Permanent financing is usually arranged before the construction loan is disbursed.

Our construction loans are available for construction of new facilities or the refurbishment of existing structures. Funds can also be used for the purchase of fixed assets like interior or exterior improvements to owner-occupied buildings, street improvements, utilities, parking lot repair and landscaping. Our low APRs and easy repayment plans make these short-term construction loans perfect for many businesses.

Ontario Commercial Real Estate Loans for Development

Typically short-term (1 to 3 years), development financing is used to develop preowned land. Development loans are typically used for the construction of buildings, excavation work, running electrical lines, storm sewers and roads. The property being developed will typically be used as collateral for the loan until it is sold or can financially support permanent financing.

Unlike a construction loan in which funding is used for building improvements only, a development loan is used before there are any buildings on the land. Our development loans feature up to 65% Loan to Value and low APR making them the most desirable financing for businesses looking to begin construction on new structures. Typically proof of past projects and experience will be required for approval.

Permanent Real Estate Loans in Ontario Canada

Permanent financing is obtained after completion of construction, usually to repay short-term construction loans. Our permanent loans are long-term (typically 15 – 30 years in length) and are used for the financing of fixed assets like real estate.

Funds can be used to repay construction loans, financing for property acquisition, or to refinance against existing debt. With a qualifying credit score and Loan to Value ratio of up to 85%, most business owners are easily approved. Applicants will need to provide DOT and clear title to qualify for permanent financing.

Hard Money Loans

Hard money loans are a great option for funding when a business’s credit score is less than desirable or they have been denied a loan before. Instead of using credit history as collateral, some type of physical property (asset) is typically used as equity to ensure repayment.

Traditional banks usually won’t offer hard money loans, which can make them difficult to obtain. Our hard money loan APR varies depending on size and scope of loan needed and can be anywhere from 9% to 18%. Applicants will need 65% – 75% Loan to Value ratio for approval.

Fix and Flip Lines of Credit in Ontario

Fix and flip lines of credit allow for the acquisition, improvement, and resale of a property for profit. Typical fix and flip lines will fund up to 100% of the purchase and repair price as long as the loan amount is 70% or less of the appraised after repair value (ARV).

Funding is most often used for the purchase of real property, contractor fees, listing and broker fees, and other aspects of property investment. These short-term loans are typically repaid with proceeds from the sale of renovated properties and are usually 1-12 months in length. They are obtainable for businesses with 2 or more years of experience in the industry.

Bridge Loans | Bridge Lines

Bridge loans are short-term loan options which are typically repaid over 3 years while waiting for long-term financing to be funded. They are also known as “caveat loan,” and, less often, as a swing loan.

They allow the borrower to meet their current financial obligations by providing an immediate cash flow. Funding can be used to pay employee wages, business utility bills and other accounts payable.

We provide bridge funding options for businesses who are applying for long-term loans so that they can avoid delay in operations. With low APR, a bridge loan is typically approved for seasoned businesses with experience and a comprehensive portfolio.

For more information and current rates for commercial real estate loans in St Paul, call or email our team today.

Understand your options.

The starting place is to become informed. Once you understand your options, available rates, and timelines you can make good decisions.  Our Ontario business loan specialists are here for you – reach out today!