François Létourneau-Cloutier

A Mortgage Planners commercial broker is the direct link between financing your rental housing property and the lending financial institution. Thanks to our professional experience and our overall knowledge of the commercial mortgage market, we are familiar with the various services offered by financial institutions and are knowledgeable about the services that are best suited to your needs, including the best available financing terms and conditions.

The main criteria for financing rental buildings with 5 or more units, whether conventionally or through CMHC, are as follows:

• Building location
• Building age
• Physical condition of the building
• Building optimization potential
• Apartment classification
• Nature of offered services
• Capital expenses incurred
• Rent relative to the market

CMHC-insured financing can cover up to 85% of the estimated market value or purchase price of the building–whichever is lower. CMHC requires a debt coverage ratio based on the term chosen by the borrower and can offer amortization periods greater than 25 years Conventional financing generally covers 70 to 80% of the purchase price or market value (whichever is lower) as determined by a professional certified appraiser. The lender requires a debt coverage ratio based on X amount of years and the amortization period is usually set at 25 years. In some cases, it is possible to obtain a 30-year amortization period with a waiver. Save time, energy and money and most importantly, optimize your financing by entrusting your property with a commercial mortgage broker.