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Product Name
Commercial Mortgage
Product Description Commercial mortgage loan is a product that a bank provides funds for the customer and the enterprise to finance the purchase and or refinance of a commercial real estate property (retail, office and industrial buildings, etc.) and the secured property is served as the collateral. The loan will be a lump sum on closing but the repayments are amortized into equal monthly payments over a long period of time.
Product Feature
1. Loan amount can reach 70% of the lesser of the purchase price or appraisal value of the property (the appraised value of the property has to be appraised by the bank approved realty appraiser)
2. Loan term is flexible, the contract period varies from 1 year to 5 years, and the amortization period can be up to 25 years, it can be selected according to client’s liquidity position.
3. Flexible loan amount, up to $ 25 million CDN.
4. Convenient repayment by equal monthly principal and interest repayment, it releases the pressure of one time lump sum repayment.
Term
Real estate loans are mostly long-term loans
Rates
Usually the mortgage is quoted at floating interest rates on CDN prime basis over a reasonable spread; it may also have a fixed interest rate option subject to the bank’s interest rate policy, to be agreed upon in the contract.
Fees
All fees are discussed and agreed upon in the contract.
Eligible Clients
It is applicable to the corporate clients and or business enterprise who purchase or refinance the eligible commercial properties like office condominium unit, shopping plaza, retail condominium unit and others.
Term and Conditions
1. The borrower’s credit rating must qualify according to Bank of China (Canada)’s credit policy. The Bank will review the borrower’s loan profile periodically to determine its need and adjust its credit rating accordingly.
2. Borrowers should have sound business management background, qualified leadership and well management system in finance and its credit must in good condition, so it has the ability to repay the loan principal and interest.
3. Provide corporate guarantors or personal guarantors that approved by the Bank.
4. Borrowers should open business account with Bank of China (Canada).
5. Comply with the Bank of China (Canada) other relevant credit requirements
Required Document
1. Loan Request Application
2. Article of Incorporation & Certificate of Shareholders, Directors and Officers
3. The latest company incorporation documents
4. Legal officer of the Corporate customer and the valid identification (passport, identity card or driving license) and a tax card (except health care card)
5. Borrower’s most recent three years of audited financial statements and recent financial statements
6. Notice of Assessment for the Company and its corporate taxation files
7. Personal financial statements of the Personal Guarantor
8. Other documents required by Bank of China (Canada)
Procedure
1. Holding the relevant information and presented the loan application to the Corporate Business Department of Bank of China (Canada).
2. Providing Bank of China’s approved securities (including guarantee and mortgage property) and all the necessary documents
3. Loan application must be reviewed by the bank's business department before being accepted
4. Bank of China (Canada)’s business department will investigate applicant’s background, conduct site visits, and complete the internal review and due diligence process
5. After the loan application is approved by the bank, the bank will issue the commitment letter to the borrower, if the mortgage terms and conditions are accepted by the client, the client can sign the commitment letter.
6. Bank will appoint the approved lawyer to prepare the mortgage and once the mortgage for the collateral has been registered and other relevant formalities has been completed, the loan can be disbursed as per customer’s direction of funds and instruction
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