By : Radu Arvatescu
Canada’s health industry is in a constant state of evolution, with public, private, and mixed health systems providing options for patients. Professionals seeking to open their own practices can enjoy favourable operating conditions and a competitive tax environment.
When starting a medical office or practice, financing will be one of the biggest challenges. Without the funding that large private corporations enjoy, smaller operations can struggle to get off the ground.
For the best chance of success, you’ll need to start by comparing medical office mortgages in Ontario.
How Exactly Can You Use Medical Office Mortgages in Ontario?
Commercial mortgages are often far more versatile than their residential counterparts, although they do attract higher fees and increased documentation requirements.
You can use a medical office mortgage Ontario to:
- Open a new practice by investing in real estate and new construction.
- Purchase an existing facility from where you can operate your private practice.
- Refinance an existing mortgage with terms that are more favourable for current interest rates.
- Fund the expansion of a medical practice with new buildings on-site or at a new location.
Mortgages can range from a few hundred thousand Canadian dollars, right up to multi-million-dollar loans. The amount you can borrow will depend on your current financial situation, the viability of your practice, and the success of your practice if you are expanding on an established business model.
What Kind of Requirements are Needed to Secure Medical Office Mortgages in Ontario?
Because medical practices are highly specialized, documentation and requirements can vary from case to case.
You can expect to be asked for some or all the following when applying.
- If a lender cannot assess your business credit rating, you may be asked to provide proof of a credit score. If you are borrowing as an individual with liability, a higher score will always be better.
- The location of the property (to be developed or existing property) will be considered by the lender. Median values, risk of fire and crime, and other factors will contribute to their decision.
- If the property is already occupied and you are expanding, you will need to demonstrate qualifying income to show that there’s cash flow available to service the mortgage.
- If you are starting a practice from scratch, a detailed business proposal including financing, partners, and projected earnings will be required.
- Your net worth may be considered by the lender, along with cash liquidity. If you already have an established medical office, its earnings and assets will be considered.
- The amount of down payment you can provide will benefit your application. Between 20% and 25% is most favourable.
Presenting all this information can mean gathering a significant amount of documentation. It’s important to be as detailed as possible, using official statements and authenticated documents.
If you have never applied for medical office mortgages in Ontario, you could find the process to be overly time consuming and at some points confusing. Working with a qualified mortgage broker can make these steps much simpler.
Do You Need a Broker for Medical Office Mortgages?
An increasing number of businesses in Ontario are finding value in professional mortgage brokers. A licensed mortgage expert can help you with application processing and documentation. They’ll also work to get the best rate on a mortgage with favourable terms. This keeps costs down over the lifetime of medical office Mortgages in Ontario.
Work with a broker and enjoy expert support throughout the process with a better outcome that will benefit you for years to come.
Lowest Residential Mortgage Rates in Canada*
|TD Bank Rate
|3 Year Fixed/ 25 yrs
|4 Year Fixed/25 yrs
|5 Year Fixed/ 25 yrs
|5 Year Variable/ 25 yrs
|5 Year Fixed/ 30 yrs
|5 Year Variable/30 yr
|3 Year Fixed/30yr
|**NEW RENTAL 5 Year Fixed /30yr
Updated: Feb 20 , 2024
* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion.Some condition may apply.Rates may vary between geographic regions and the posted rates on this website may not be available in your area.TD Bank rate used for comparable are the rate listed in the Broker Chanel Portal by TD Canada Bank at the date above. Please contact our MCI office for more details and current promotions.
LOWEST REGULAR RATES IN CANADA* * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.