Commercial Loan

Buying commercial real estate is an important decision, potentially very profitable and often complex. With support from our experts and a loan adapted to your needs, we can help make your project a reality.

Loan Amounts

Minimum: $1,000,000

Maximum: Depends on the deal, no set maximum. Safe Mortgages LTD has funded $100M+ loan amounts, but most deals are between $4M-$20M.

Loan-to-Value

Conventional mortgages up to 75% of the asset’s value (based on prescribed capitalization rates).

Second mortgages are available up to 85%.

Conventional Mortgage Program

1st & 2nd mortgages
1-5 year terms
Up to 25-year amortization
Closed and open mortgages
Up to 70% LTV on 1st mortgages
Minimum DSCR requirements

Pricing

Pricing is much deal-dependent, but typically 100-230 bps above the Government of Canada bond yield for the requested term. Second mortgage rates range from 6% to 9%. We are competitive with the banks and life insurance companies in terms of rates, but we also consider ourselves to be more flexible.

Target Properties

Multi-unit residential 10+ units
Student residences
Industrial
Office space
Retail
Mixed use
Conventional Mortgage Program
1st & 2nd mortgages
1-5 year terms
Up to 25-year amortization
Closed and open mortgages
Up to 70% LTV on 1st mortgages
Minimum DSCR requirements
BCA (Building Condition Assessment), ESA (Environmental Safety Assessment), and appraisal are required for every property

Requirement

Property type and location

Business Financial Statements

Personal Net Worth Statement

Property Appraisal