Common questions

Yes, many commercial properties are bought through a corporation. Lenders will usually review the corporation's documents and financial statements, and they often ask the owners for personal guarantees.

Whether the property is best held by your operating company, a holding company, or personally is a tax and legal question, so it's worth chatting with your accountant and lawyer early. We're happy to work alongside them.

Lots of business owners reduce their taxable income through legitimate deductions, and lenders know that. Depending on the lender, they may also look at your business financials, the income the property generates, the property's value, and the equity you're putting in.

Every lender weighs these a little differently, which is why finding the right one matters. We'll review your situation first and tell you honestly where you stand.

They look at the property, the strength and history of your business, and how your business can carry the mortgage payments. Lenders usually ask for business financial statements, tax filings and details about the property and the owners.

Our Get ready checklist for business owners will help you pull it all together.

Not at all. A decline from one lender reflects that lender's own policies. Banks, credit unions, alternative lenders and private lenders each have different criteria and different comfort levels with certain properties and borrowers.

We'll start by understanding why you were declined, then look at whether the file can be strengthened or placed with a lender who is a better fit.

Residential mortgage rules generally cover properties with up to four units, and those lenders focus mostly on your personal income and credit. Once a building has five or more units, it is generally financed as a commercial or multi-residential property, and lenders look much more closely at the building itself: its rental income, its expenses and its condition.

That change affects which lenders are available, what documents you'll need, and often the loan terms. We'll walk you through what to expect.

The debt service coverage ratio, or DSCR, compares the income a property earns after operating expenses with the annual mortgage payments. For example, a ratio of 1.25 means the property earns 25% more than the payments require.

Lenders use it to see whether a property can carry its own mortgage. Our Check your deal tool explains each term as you go.

Yes, mixed-use properties are financed regularly. Lenders usually look at how much of the building and income is residential versus commercial, the commercial tenants and their leases, and the location.

Some lenders prefer a small commercial portion, so matching the property to the right lender is important.

Yes, many investors do. Lenders will generally review the corporation's documents and financial statements, and they usually ask for personal guarantees from the owners. Not every lender works with every ownership structure, so it helps to think about this before you start shopping for financing.

Holding property in a corporation also has tax and legal implications, so please talk with your accountant and lawyer. We're glad to coordinate with them.

Often, yes. Some lenders will finance several properties together, or you can refinance them one at a time. The best approach depends on the equity and income of each property and your plans for the portfolio.

We'll look at the whole picture first, including when each current mortgage comes due and whether any penalties apply.