Posts

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.