Is commercial mortgage regulated?
Is a commercial mortgage regulated? Should you check up the rules again?
Well, the simple answer is: it depends.
Commercial mortgages have certain criteria according to which they are regulated by the FCA. Before we go in for the rules and regulations and the heavy terms, let us break down what a regulated commercial mortgage is.
What is a regulated commercial mortgage?
In Ontario, commercial mortgages are regulated by the FCA. These mortgages are subject to approval only if they complete certain criteria. The brokers conducting these transactions must be licensed and approved by the governing body.
The lending process can become longer once the new rules are implemented. Usually, if the borrower has a home which is 40% occupied on the commercial property, then they are eligible for a regulated commercial mortgage only. Buy to lets or houses which are bought solely to be rented do not come under regulated commercial mortgages.
Lenders and brokers would also be required to be regulated for a commercial lending on a mortgage. They would have to fulfill certain criteria stated by the FCA to be able to lend normally.
How can we help you get a regulated commercial mortgage?
Commercial mortgages can help you to get the business property you require with ease. You need to have a business plan which is worth investing in and your lender will give you the finances you require. As the new rules get implemented, lenders would be required to make an in-depth analysis of your finances and income.
Ontario lending has always had the backs of our clients. We have access to a lot of lenders who can deliver the amount you need while following the rules and regulations set. We can even align your application to the requirements of a regulated commercial mortgage.