What does ICI mean in commercial mortgage financing?
ICI stands for industrial, commercial and investment real estate. It includes properties such as warehouses, offices, retail plazas and income-producing apartment buildings. These categories can overlap: a leased warehouse is both industrial property and an investment. ICI describes the property sector, not a separate mortgage product or a guarantee of eligibility.
What is a commercial mortgage?
A commercial mortgage is financing secured against property used for business or investment purposes. The review considers the building, its use, the borrower and the cash flow supporting repayment. Requirements differ from a typical mortgage on an owner-occupied home.
What types of commercial properties can I discuss?
The Mortgage Providers welcomes enquiries about business premises, offices, retail properties, industrial buildings, warehouses, multi-unit residential buildings and development projects. Specialty properties such as hospitality or care facilities require a review of their particular operations and lender requirements.
How much down payment or equity will I need?
There is no single percentage for every commercial property. The amount depends on the proposed lender, accepted valuation, property type, financial performance and loan structure. Ask for a breakdown of your required contribution, closing costs and funds needed after closing.
What is debt service coverage?
Debt service coverage measures the income or cash flow available to meet debt payments. A lender uses its own calculation and minimum requirements. Ask which income, expense adjustments and debt obligations it includes when assessing your property or business.
Can I refinance an existing commercial property?
You can request a review of refinancing options. Provide your current mortgage balance, maturity date, property information and reason for refinancing. Compare the net funds available, repayment terms and any costs of paying out the existing loan.
Can an apartment building qualify for CMHC-insured financing?
An eligible rental building may qualify under a CMHC mortgage loan insurance program. The standard rental housing program requires at least five rental units, along with other property and borrower conditions. Unit count alone does not establish eligibility or guarantee a particular rate.
Will the lender need an appraisal or environmental report?
A lender may require an appraisal and, depending on the property, environmental or building-condition reports. Confirm the required scope, approved professionals and acceptable report dates before ordering anything. Report costs and review time should be included in your transaction plan.
Do you help with commercial mortgages across the GTA?
The Mortgage Providers welcomes commercial mortgage enquiries from Toronto, Mississauga, Brampton, Vaughan, Richmond Hill, Markham, Oakville, Burlington and Durham Region. Share the property address, intended use and financing goal to begin a review.