Commercial mortgage

[augustynr1]

Hi,

I am trying to remortgage the 20 unit building to pull some cash out.

What should I be asking/hoping for?

I have a mortgage which is 6.5% but would love to get better then that.

Thanks,

 

[Thomas Beyer]

Around 3.5% to sub 4% without CMHC .. 2.5% to sub 3 with CMHC.

 

[augustynr1]

Thomas,

Thank you.

Any idea who would give me these rates?

 

[Thomas Beyer]

Any commercial mortgage broker .. many banks lend in this space .. 30+



Try Montrose Mortgage (multiple locations, reps are organized by location and/or property type) or Peter Kinch's team .. also some of the realtors have associated mortgage brokers, say Colliers or CBRE or Avision Young.

 

[augustynr1]

Thomas thank you,

The problem is that I have 2 more years on my existing mortgage and the bank I am with is willing to refinance it but at the higher rate so I am trying to see what is out there to help "them" to help me

So if there was a site which posts the rates, that would help a lot.

I looked through the banks and did not see anything or I do not know where to look ....

 

[Thomas Beyer]

[quote user=augustynr1]The problem is that I have 2 more years on my existing mortgage ..


That is not a problem.



That is a FACT.



Fact is the mortgage cannot be pre-paid ? Or that it is expensive ? or that the re-fi with the existing bank is more expensive than a new one even with penalties ?



Learn the rules of the (lending) game. You do not have to like them, but you have to play within the bank's rules.



The golden rule: He who has the gold makes the rules !

 

[augustynr1]

Thomas,

Thank you.

Would you be able to point me to a right sources of the information so I can learn?

btw: the problem with google is that you never know if what you read is good, correct info?

Thank you very much.

 

[Thomas Beyer]

Re-read my earlier post please re commercial mortgage brokers. Not all information is on the Internet. Occasionally one actually has to talk to a real human who actually knows s.th.. Banks charge a discharge penalty of the interest rate differential to a bond. So, with 2 years left at 6.50% and a corresponding bond rate at 1% you'd pay 5.5% times 2 years of the mortgage balance as a penalty if they let you out of the deal.