State of the Commercial Retail Market with Keith Watters

Keith Watters has been in the commercial mortgage business for many years. As an experienced agent, he is a great asset to the Mortgage Alliance Commercial team. Over the years Keith has been faced with almost every challenge possible when helping clients obtain financing.  As a mortgage broker, he gets to see all the action from the center field – both from the lender side and the retail side of the business. So when the Canadian Mortgage Professionals interviewed him about the state of the commercial retail market, here is what he had to say:

Q: What’s the state of the commercial retail market right now?

A: There’s lots available. As long as the interest rates stay low, the market will still be going. That’s what’s driving this whole market now – the low cost of borrowing.

Q: How should a lender decide whether to make a deal on a retail property?

A: the lenders I work with usually lend just on real estate. But then they look at the applicant, the retail outlet, as the guarantor. They tend to be real estate lenders rather than business lenders. But in the same breath, they have to make sure that retail outlet has the background experience and the cash flow to service the debt. That’s why they go back, usually, to a three-year history to see how [the business] is performing. If it’s a retail outlet, most lenders will lend on 65% of the value, and they’ll lend on “How would that property rent if it were vacant?”

Q: With retail being a tough market even in good years, how are lenders’ attitudes toward that business right now?

A: Lenders aren’t backing away. Right now in this market, we have too much money chasing not enough deals, so lenders are, at least in the Canadian market, tending to be fairly aggressive – as long as there’s real estate value there and the applicant has good cash flow.

Q: What do you think is the biggest challenge facing the commercial market over the next year?

A: I think availability. There’s a lot of money chasing good commercial deals. As soon as a good commercial plaza comes on the market, it’s just like residential housing – there’s multiple offers.

 

Article Reference: http://www.mortgagebrokernews.ca/contents/e-magazine.aspx?id=191044

Related: http://macommercial.ca/2015/03/10/oldest-rookie-joins-macc/

Mortgage Alliance Continues to Lead the Way in the Market

We would like to congratulate Michel Durand and our commercial team on winning the CMA’s Best Commercial Broker of the Year Award!!

Michel Durand, is the President and principal broker of Mortgage Alliance Commercial as well as Co-Founder of Multi-Prêts Commercial.

Michel and the Commercial team have vast experience in the commercial mortgage sector and their dedication to improving the reputation of the brokerage industry provides them with a unique and clear perspective on the challenges as well as the opportunities that brokers, borrowers and lenders face in today’s economic environment. They work tirelessly at keeping all participants in the commercial mortgage field informed of the current issues affecting borrowers as well as lenders in the industry to ensure that each is able to take advantage of the current market trends.

Congratulations again to Michel Durand and the commercial team!

Lenders Have Become Less Conservative

Interest rates are yet again at an all-time low, with credit unions like Meridian offering residential mortgage rates of as low as 1.49 per cent. Rates are even more attractive on the commercial side of mortgages. We can officially say the spring market is underway.

In a recent interview with the Canadian Mortgage Professionals (CMP), Mike Lee, head of Mortgage Alliance Commercial in B.C., stated that “interest rates are really pretty spectacular.”

“One of the asset classes that has become really spectacular is multi-family apartment buildings because, as an example, I just got quoted from a lender for an apartment building loan, CMHC insured, over $1 million, they’re quoting 1.75 per cent for a five-year [rate at press time]. It fluctuates daily, though,” Lee says. “A five-year term at 1.75 per cent is ridiculously low; it’s like free money. Some are even offering ten-year terms at 2.43 per cent. That’s insane.”

This has also peaked the interest of property owners to refinance, which in turn provides ample opportunity for brokers.

“Lately a lot of what I’ve been doing is refinancing anybody who has an apartment building because who knows when these rates will come around again,” Lee says. “When you’re talking multi-million dollar loan amounts, that sort of difference is always worth exploring because the monthly amount means huge savings. Even if there is a penalty to pay out it may only take a couple of years to justify [incurring the penalty]; it depends on the situation.”

With rates hitting record lows, take advantage of the opportunity. You can contact us with any questions you may have at (416)499-5454 ext 102 and we would be more than happy to help you with your financing needs.

You can read the full article by clicking here.

A Beacon Shines in the Commercial Mortgage Brokerage Industry

We are proud to announce that our very own Michel Durand has been nominated once again this year as the Best Commercial Mortgage Broker of the Year!!

Michel, is the President and principal broker of Mortgage Alliance Commercial Canada (MACC), as well as Co-Founder of Multi-Prêts Commercial (MPC). Both entities service commercial mortgage brokerage needs for clients across Canada. Michel has been in the commercial mortgage lending arena for over 25 years, 12 of which were with major Canadian financial institutions.

Michel’s vast experience in the commercial mortgage sector, and his dedication to improving the reputation of the brokerage industry provides him with a unique and clear perspective on the challenges as well as the opportunities that both borrowers and lenders face in today’s economic environment. He works tirelessly at keeping all participants in the commercial mortgage field informed of the current issues affecting borrowers as well as lenders in the industry to ensure that each is able to take advantage of the current market trends.

The Gala Awards Ceremony is sponsored by the Canadian Mortgage Professionals (CMP). The CMP recognizes and celebrates excellence across the entire spectrum of mortgage brokering. This annual black-tie gala is the event highlight of the year that attracts the biggest names in the business throughout Canada.

Should you have any commercial mortgage needs or simply wish to discuss a project, don’t hesitate to reach out to Michel or any of the team members at Mortgage Alliance Commercial Canada.

Out with the Old, in with the New!

Spring is near which means it’s time for spring cleaning! It’s time to get rid of the old mortgage and replace it with a better mortgage! Chances are your new mortgage will have better rates and terms which will save you money in the long run. Our aim here at Mortgage Alliance Commercial Canada (MACC) is to secure the best possible financing terms and conditions for your property.

In the past year we’ve been able to help clients with over $11 billion dollars in loans across Canada. Here are a few example of our most recent transactions for this year:

  • CMHC Apartment Complex – $5.9 Million at 1.86% 5 year term at 30 year amortization
  • Condominium Inventory – $4.5 Million at 5.5% interest only 24 months open loan
  • Condominium Construction – $9 Million at Prime plus 1% at 3.85% 24 months interest only
  • Hotel Refinancing-Repositioning – $12.4 Million at 5.46% 5 year term (open) 20 year amort.
  • Retail Repositioning – $12 Million at 4.75% interest only 24 months open loan

As rates change on a daily basis, as of today, here is an indication of the rates that are available for other types of Asset Classes:

  • Plaza Financing:
    • 3.12% – 5 years
    • 3.64% – 10 years
  • Office:
    • 3.17% – 5 years
    • 3.70% – 10 years
  • Industrial
    • 3.25% – 5 years
    • 4.05% – 10 years

Don’t hesitate to contact us! We will be happy to meet with you and discuss the options available for your specific needs.

Your MACC Team!

Oldest rookie joins MACC!

Mortgage Alliance Commercial is pleased to announce that Keith Watters has joined the team!

 

Keith Daniel Watters is an Entrepreneur, Financier, Mortgage Agent, Investor, Lecturer and Author.

Keith has been helping people finance their dreams since 1974. He also taught from 1978 to 1995, Understanding Mortgages and Real estate, How to buy Real estate with nothing Down and How to be a successful Mortgage agent.

He has financed several Billion Dollars in Mortgage Transactions with Companies he has worked with for 40 years.

He has seen it all!

Global Economy Outlook

Just when you thought it was safe to get back into the pool….

Wednesday’s post-Fed minutes equity rally reversed sharply on Thursday as investors focused again on the outlook for the global economy.  ECB (European Central Bank) chief Mario Draghi added fuel to this week’s fire with a warning about the troubled euro zone.  Toss in Ebola, ISIS, and Hong Kong protests and there is a lot for markets to think about.  Hopefully, with the long weekend in Canada and the US (Columbus Day), markets will have plenty of time figure it all out before Tuesday.

The good news for mortgage borrowers is that bond rates are back down to recent lows thanks to the general dovish tone of the FED.   Unfortunately, credit spreads are under pressure given the recent blood bath in equities, but Canada Mortgage Bonds did outperform the rest of the credit spectrum, so we’ve got that going for us.

Fun Thanksgiving fact: Benjamin Franklin preferred the Turkey over the Bald Eagle (“a bird of bad moral character”) as the American national bird.