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.