Commercial Mortgages/Term Debt
Who We Are
NCompass (en-kuhm-puhs) – to provide for, comprehensively. NCompass is a boutique financial services firm that provides commercial lending and advisory services. With decades of commercial and consumer finance experience, in Canada and other global markets, we are able to deliver solutions that are the right fit for our clients. Anyone can provide money!
We work to understand our client’s objectives to ensure complete alignment with our financial solutions. Building lasting client relationships and measureable results are at the core of what we do.
Frequently Asked Questions
What type of lenders fund commercial mortgages?
Lenders that fund commercial mortgages are, Insurance Companies, Banks, Credit Unions, Private Mortgage Lenders, Pension Funds, Trusts, Mortgage Fund and others.
Are commercial rates the same as residential rates?
Typically, there will be a difference between commercial rates and residential rates. Commercial rates tend to be higher because the risk is different. The difference in the rates will depend on the type of asset, location of asset, cashflow, sponsorship etc.
*Exceptions to this may occur when the mortgage is government insured.
What documentation do you require for a commercial mortgage?
The initial documentation required would be:
- Rent Roll
- Income and Expense Statement
- 3 Years Financial Statements
- Articles of Incorporation
- Purchase and Sale Agreement/MLS (if applicable)
- Sponsor information (Personal Net Worth Statement/T1 Generals/NOAs)
More information may be required on a case by case basis.
What are the costs to arrange a commercial mortgage?
Costs will vary from transaction to transaction. Costs will typically include:
- Broker Fee
- Building Condition Report (BCR)
- Environmental Report (s)
- Legal Fees (Two lawyers will be required in many situations-Lender’s Lawyer Borrower’s Lawyer)
- Lender Fee
What is the process?
Once the relevant information has been obtained, a Term Sheet will be usually issued by the lender. The client will be asked to execute the Term Sheet and make an initial deposit in order for the lender to move forward.
At this point the underwriting process formally begins. The commitment and broker documents will be issued once the deal has been approved and successfully underwritten.
After the Commitment is issued, the 3rd party reports are typically ordered. Once the reports are complete and satisfactory to the lender, the transaction moves towards closing.
Legal instructions will now be issued by the lender to their lawyers. The lender’s lawyer will communicate with the borrower’s lawyer and bring the deal to a close.
How long does the process take?
Typically, a commercial deal takes an average of 6-8 weeks to complete assuming that all of the transactional information is readily available. This is a rule of thumb. In certain situations deals may close faster or similarly take longer as each deal is unique.
Leverage our 20+ years in the mortgage industry with expert commercial mortgage lending advice.
An enthusiastic team of mortgage specialists are always here to help meet your borrowing needs.
Our mortgage professionals ensure you get optimum results.
“For expert mortgage advice you can trust.”
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