Mortgage Solutions
Commercial Mortgage
Commercial Mortgage
Purpose :
- Purchase of commercial property
- Refinancing of commercial property
- Renovation or improvement of commercial property
Commercial property type : Commercial Rental Property(Plaza), Office Building, Hotel/Motel, Strip Mall, Land
Amount limit : Up to 60% of commercial property value (lower of appraisal value or purchase value)
Interest rate : Variable Rate
Amortization period : Up to 25 years
Refinancing
Apply for an additional loan using equity in an existing property!
Requirement
You need remaining equity in your existing property to apply for an additional loan.
Amount limit: Up to 60% of commercial property value (lower of appraisal value or purchase value)
Your property’s remaining equity value can be calculated using the following example:
If 60% of your property value can be put towards a loan and you have an existing loan for 40% of the house value, you can use the remaining 20% (60% – 40% = 20%) towards an additional loan. In addition, any principal paid off in existing loans can also be put towards an additional loan.
Purpose
- Renovation or improvement of commercial property
- Buy an additional property
- Buy a company car
- Consolidate debt such as higher interest credit card balance and loans
*For more detailed information please click top right inquiry button or visit one of our branches.
Switching Mortgage
Switch your mortgage to Shinhan Bank Canada and find a mortgage solution that suits your needs.
Mortgage Transferring Process
Mortgage consultation and application
Property appraisal and Mortgage review
Mortgage approval
Registration of mortgagee and request of payout statement from current financial institution by lawyer
Mortgage execution
When you transfer your mortgage, you can also apply for an additional loan depending on your financial status and the purpose of your loan. Appraisal fees and legal fees apply when transferring.
*For more detailed information please click top right inquiry button or visit one of our branches.
Apply for a Commercial Mortgage
Required Documents
Personal Identification
- Driver’s Licence
- Passport or SIN Card
- Business Registration
- Article of Incorporation
Income Verification
- Documentary Evidence of Income
(Financial Statements T1 General, Notice of Assessment)
Required Documents for Loan Process
- Sales Contract Documents
- Business Plan (Projection)
- Written Estimate of Expenses
- Lease Agreement
- Equipment List
- Rent Roll
*Required docents shall be different depending on the products you are applying for, so, please contact our branches for detail information.
Loan Process (Analysis of repayment capability and appraisal value)
Corporate Credit Rating
Appraisal of Collateral
Analysis of Business contents
Environmental Evaluation (When Required)
Site Inspection
Loan Execution
Loan Approval
Funds disbursed to your lawyer
Select repayment frequency and amount
Loan repayment
Lighten your mortgage through additional prepayment
Frequency : Bi-weekly or monthly
Repayment method
[Auto transfer from Shinhan Bank accounts]
- Chequing/ Savings Account
[Pre-authorized auto payment from other banks]
- Provide the your bank’s VOID CHEQUE or account information with pre-authorized application form
(Bank name, account holder’s name, branch number, institution number, account number)
Prepayment Option (Additional prepayment: Advance payment):
Prepayment is permitted up to 10% of outstanding principal balance of the loan , once in each year at any time during such year without penalty
Amortization : General Amortization: 25~30 years (Mortgage products), 5~10 years (Loan Products)
|
Amortization |
Shorter |
Longer |
|
Monthly repayment amount |
Higher |
Lower |
※ For Residential Mortgage product, amortization of longer than 25 years requires more than 20% of purchase value as a mortgage down payment
Prepayment penalty
For CLOSED residential mortgage, your prepayment penalty will be different depending on the remained contract period
*For more detailed information please click top right inquiry button or visit one of our branches.