The financing of industrial buildings must take into account several aspects depending on whether you are in rental or owner-occupant industry:
- The location of the building and its accessibility to major highways
- The type of industrial activities carried out in the building
- The financial quality of the owner-occupant
- Your experience as an industrial property manager
- The environmental risk linked to industrial activities
- The physical aspect of the building and its sustained upkeep
The percentage of funding varies depending on the financial institution and the associated risk. It can be as high as 100% of the lesser cost or market value.
The possible amortization varies depending on the risk and the quality of the owner. It varies in between 15 and 25 years.
The documents required by financial institutions are usually:
- The complete purchase offer and the appendices
- Confirmation by the statement of a bank account of your down payment on purchase
- A recent market evaluation of less than 2 years
- A phase 1 environmental assessment of less than 1 year (depending on the amount of
- the loan and the risks)
- Inspection report (sometimes required)
- A structure report (sometimes required for buildings in less good physical condition)
- History of renovations to the property
- Owner-occupants financial statements
- Copy of municipal and school tax statements
- The annual statement of energy expenses assumed by the owner
- Copy of the last insurance policy
- A certificate of location less than 10 years old
As for the interest rate, you can choose a term varying between 1 and 10 years. The rate for this type of financing is not displayed by most banks. The interest rate will be defined according to the risks incurred by the financial institution according to the information provided.
The bank will also impose an acceptance fee and an annual review fee which we will negotiate for you.
Your mortgage broker
Your mortgage broker will be your ally in order to obtain:
- The highest percentage of financing to reduce your down payment
- The longest amortization to reduce the impact on your cash-flow
- The lowest possible application fees
- Negotiating the best financing conditions on the market