If you want to expand your business, you should consider obtaining an industrial or commercial mortgage. Knowing the differences between these two types of mortgages is essential before you start applying for one.
What types of properties are industrial mortgages best suited for?
An Ontario industrial mortgage is a specific type of commercial mortgage. Industrial mortgages are designed to be used for certain kinds of properties, such as mixed-used sites or single-purpose industrial buildings.
These are some examples of Ontario locations that would be suitable for an industrial mortgage:
- Production or manufacturing facility
- Auto shop
- Logistics facility
- Storage facility
What will a lender want to see if I apply for an Ontario industrial mortgage?
When you apply for any type of commercial mortgage, your potential lender will want to know things like your financial history and credit score. When you apply for an industrial mortgage, they’ll also want you to provide specific documentation, like your business plan for the industrial property and, potentially, an environmental impact report.
Since lenders are looking at lending you a large amount of money, when it comes to giving you an Ontario industrial mortgage, they will want specific details in your business plan. You need to be able to tell them everything, from what you want to use the site for to whether you plan to live on-site or rent it out to tenants.
What are some conditions that apply to industrial and commercial mortgages?
The following conditions apply to both types of mortgages:
- They are for commercial real estate, not residential properties.
- The borrower is usually a company or a business, not an individual.
- The rates tend to be higher for these types of mortgages than residential ones.
Can Northwood Mortgage help me obtain an Ontario industrial mortgage?
The answer to this question is definitely yes! At Northwood Mortgage, we offer both residential and commercial mortgages, including industrial mortgages. We can do all of the following for you:
- Explain the impact that bad credit will have on obtaining an industrial mortgage.
- Help you navigate through the process of obtaining a mortgage. This process can be fairly complicated, and we will provide you with all the details that you need to know. From what kind of identification is required to what type of rate you may qualify for.
- Walk you through how much of a down payment is required for the type of property that you are interested in. The amount of down payment needed depends on the kind of property you want to buy and how much of a risk you are considered to be as a borrower.
Whether you are ready to apply for an industrial mortgage or just want to learn more about them, we can help. You can call Northwood Mortgage at 888-257-8130 or contact us online to get started today.