Refinancing a Commercial Property in Toronto
Commercial Property Refinancing in Toronto to Maximize Equity and Growth
Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. *O.A.C. & E.O
Esi Ghassemi - Mortgage Broker at Centum Financial Services Limited Partnership - Brokerage # 13054
Maximize the Potential of Your Commercial Investment
Refinancing your commercial property can be a strategic move to optimize your finances, access equity, or secure better terms. At Esi.Mortgage, we specialize in helping property owners across Toronto, Richmond Hill, and the Greater Toronto Area (GTA) unlock the value of their commercial investments through tailored refinancing solutions.
What is Commercial Property Refinancing?
Refinancing a commercial property involves replacing your existing mortgage with a new one, often with improved terms or to access equity. This process can help you:
- Lower your interest rate and monthly payments.
- Consolidate high-interest debts into one manageable loan.
- Access funds for property upgrades, expansions, or investments.
- Improve cash flow for business operations or other priorities.
Benefits of Refinancing a Commercial Property
Access Equity
Use the increased value of your property to fund new projects or investments.
Reduce Costs
Secure a lower interest rate or better terms to save money over the life of the loan.
Debt Consolidation
Combine multiple debts into a single, more manageable payment.
Enhance Property Value
Fund renovations or upgrades to increase rental income and property worth.
Improve Cash Flow
Free up resources for business growth or unexpected expenses.
How Esi.Mortgage Can Help
At Esi.Mortgage, we provide expert guidance and customized refinancing solutions tailored to your unique needs. Here’s how we support you:
Comprehensive Assessment:
- Evaluate your current mortgage terms and financial goals.
- Determine the best refinancing options for your property.
Access to Top Lenders:
- Connect with a network of lenders offering competitive rates and terms.
- Explore options from banks, private lenders, and credit unions.
Streamlined Process:
Handle all paperwork, negotiations, and approvals to save you time and effort.
Ongoing Support:
Provide advice on managing your refinanced mortgage and maximizing its benefits.
Types of Properties We Refinance
Office Buildings
Optimize financing for spaces that support businesses.
Retail Properties
Secure better terms for stores, restaurants, and other retail ventures.
Industrial Properties
Access equity for warehouses, manufacturing units, and logistics centers.
Multi-Family Residential Buildings
Increase cash flow for apartment complexes and rental properties.
Mixed-Use Properties
Refinance properties combining residential and commercial spaces.
Eligibility Requirements
To qualify for commercial property refinancing, lenders typically require:
Equity in the Property
Sufficient property value compared to outstanding debts.
Strong Credit Profile
A good credit history to secure favorable terms.
Stable Income
Demonstrated ability to manage the refinanced loan.
Property Appraisal
A recent appraisal to determine the current market value.
Our Partners
Why Choose Esi.Mortgage?
With extensive experience in commercial property financing, Esi.Mortgage is your trusted partner in Toronto, Richmond Hill, and the GTA. We simplify the refinancing process, offering expert advice and tailored solutions to help you achieve your financial goals.
Transparent & Efficient Process
From pre-approval to closing, I provide clear guidance at every step. I aim to simplify the mortgage journey and empower you with the right financial decisions.
Client-First Approach
I work for you, not the banks. I prioritize securing the most competitive mortgage rates and terms while ensuring a smooth and stress-free process.
Personalized Mortgage Solutions
No two financial situations are the same. I focus on crafting customized mortgage strategies to align with your short-term and long-term goals.
Access to a Wide Network of Lenders
From major banks and credit unions to private lenders, I have the connections and expertise to find the best mortgage solutions tailored to your financial needs.
Industry Expertise & Experience
With over nine years in the mortgage industry, I bring a wealth of knowledge and insights to help clients navigate the complexities of home financing.
Case Study
Refinancing a Commercial Property in Ontario
The Goal
A commercial property owner in Vaughan wanted to refinance their retail plaza, valued at $4,200,000, to access equity for renovations and future investments. They had an existing mortgage of $2,500,000 but wanted to increase their financing to $3,150,000, keeping the Loan-to-Value (LTV) under 75%.
The Challenges
High-Interest Existing Loan → Current mortgage at 7.25% with a private lender
Cash Flow Strain → Monthly payments were limiting reinvestment into the property
Debt Service Ratios → Required a lender that accepted rental income projections for qualification
Credit Scores → Primary applicant: 710, Co-applicant: 675
The Solution
Secured a refinanced commercial mortgage at 6.10% (5-year fixed) with a 25-year amortization
Increased loan amount to $3,150,000, freeing up $650,000 in equity
Used projected rental income ($290K/year) to qualify for better terms
Reduced monthly mortgage payments by $2,800 to improve cash flow
The Outcome
New Mortgage Amount:
$3,150,000 @ 6.10% (5-year fixed)
New Monthly Payment:
~$19,700 (vs. $22,500 previously)
LTV After Refinancing:
75%
Approved in 4 weeks
Why Work with Esi.Mortgage?
- Access to top commercial lenders for lower rates
- Expert structuring to maximize equity & cash flow
- Tailored solutions based on rental income & business needs
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Frequently Asked Questions
How much equity can I access through refinancing?
The amount depends on your property’s appraised value and lender policies. Typically, you can refinance up to 75-85% of the property’s value.
Are there fees associated with refinancing a commercial property?
Yes, fees may include appraisal, legal, and administrative costs. We’ll help you understand and minimize these expenses.
Can I refinance if I have multiple mortgages on the property?
Yes, refinancing can consolidate multiple loans into one, simplifying your payments and potentially lowering interest rates.
What documents are needed to apply for refinancing?
Common requirements include financial statements, property appraisal, mortgage details, and proof of income.
How long does the refinancing process take?
The timeline varies but typically takes a few weeks. We work efficiently to expedite approvals and minimize delays.