Commercial Mortgages

Offering financing to meet your commercial mortgage needs

At League Savings and Mortgage, we offer commercial lending on a variety of properties from multi-family residential, retail, office, industrial, seniors housing to self-storage and hotels. Whether you are looking to acquire a new commercial real estate property or refinance an existing one, you can look to League Savings as your advisor.

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Commercial Mortgages

Purposes, Types, Features

Commercial Mortgages are available for:

  • Purchase
  • Renovations
  • New Construction
  • Transfers/Assignment
  • Equity take-out
  • Consolidation
  • Payout other lenders

Types of Real Estate Covered

Multi-residential

  • CMHC insured maximum 85%
  • Non-profit organization – Canadian Mortgage and Housing (CMHC) or government guaranteed
  • Conventional based on appraised value
  • Affordable housing program (CMHC)

Commercial

  • Strip malls
  • Office buildings
  • Industrial buildings
  • Land for residential development
  • Speculative home construction under selective circumstances
  • Churches, motels, mini-home parks
    • Maximum up to 65% determined by location, condition, marketability, cash flow position
    • Amortization up to 20 years (CMHC 25 years)
    • Confirmed cash flow to provide minimum 1.2x (times) debt service coverage

Interest Rates

  • Fully competitive in the industry and based on perceived risk that includes location, type, condition, debt service, etc.
  • CMHC – Posted residential rate or less depending on the merits of the application

Application Fees

  • Up to 1.5% of loan amount – based on complexity of the application
  • Applicable CMHC fees

Areas Served

  • New Brunswick
  • Newfoundland and Labrador
  • Nova Scotia
  • Prince Edward Island

Application Process

  • Credit Union/Broker/referral source submits proposal with supporting documentation.
  • League Savings and Mortgage will review the proposal. If League Savings and Mortgage is willing to consider an application, a Preliminary Letter of Interest (PLOI) outlining our initial terms and conditions (within 48 hours) will be issued.
  • Client reviews League Savings and Mortgage Preliminary Letter of Interest and if the client decides to proceed, returns the signed acknowledgement with the initial non refundable portion of the commitment fee.
  • If the client has any concerns or matters requiring clarification these should be addressed with the Commercial Mortgage Specialist.
  • If the client has any concerns or matters requiring clarification these should be addressed with the Commercial Mortgage Specialist.
  • League Savings and Mortgage proceeds to complete the underwriting process with subsequent notification to the borrower of approval by way of a formal commitment letter which is to be signed and returned to League Savings and Mortgage.
  • Note: Our underwriting process includes a site visit, which can be arranged at the convenience of the applicant.
  • Upon acceptance of terms and conditions by League Savings and Mortgage and the client the mortgage package is sent to the Solicitor for closing.

Documentation

Each Mortgage is assessed individually. Not all documents listed below will be required. Your Commercial Mortgage Specialist will notify you of what is required.

League Savings and Mortgage Documents

  • Commercial Mortgage Submission Summary
  • Commercial Loan Application (includes names of officers of the company)
  • Applicant(s)/Guarantor(s) Statement of Affairs
  • Consent and Authorization to Use Personal Information
  • Appraisers Letter of Transmittal
  • Guidelines for Completion of Residential and Commercial Appraisal Reports
  • Environmental Assessment Checklist (or an Environmental Assessment report or questionnaire may also be acceptable)
  • Joint Disclosure Consent – Commercial Accounts
  • Rent Roll Form

See Commercial Mortgage information package for more information

Other Documents

  • Three years tax returns
  • Most recent Notice of Assessment (NOA)
  • Three years financial statements for the company
  • Current operating statement for the real estate to be financed
  • Property details and photos
  • Property appraisal
  • Environmental Assessment report or questionnaire (if League Savings and Mortgage Environmental Assessment Checklist form is insufficient)
  • Current credit report – personal and commercial
  • Copy of Purchase and Sale Agreement, as appropriate
  • Income/Expense Projections for two years
  • Copies of leases and rent roll
  • Construction cost estimates and contracts
  • Transfers/Assignments:
    • Copy of maturity notice
    • Copy of original mortgage document
    • Property details and photo
    • Phase I Environmental Assessment Report, as required
    • Current appraisal by an approved AACI

Commercial Mortgages Contact Details

Contact us for information about Commercial Mortgages.