Financing Analysis

When seeking to raise commercial property finance the choice of lenders and options on the market can be as overwhelming as the bankers’ jargon in your financing agreement. With years of experience in commercial mortgage financing, we can prepare you for success the first time around.

When applying for a commercial mortgage there a number of factors to consider:

Once these questions have been answered, your lender will then ask you to provide up-to-date property information. The best way to do this is to prepare a financing summary, complete with supporting documents. This will save the lender time and shorten the application process.

Our Financing Analysis reports are prepared with lenders in mind. They present the facts and address the risks that will be of greatest concern. A typical report will include the following:

  • Underwriting summary: summary of loan highlights and parameters (i.e. loan-to-value and debt service coverage), strengths, risks and mitigation measures.
  • Sensitivity analysis: assessment of term default and refinancing risk in view of changing economic factors.
  • Exit strategy analysis: downstream analysis of loan at term maturity.
  • Property analysis: property location/demographics, site and building description, permitted uses/zoning, leasing profile and history.
  • Borrower/guarantor credit analysis: summary of property ownership, financial statements and analysis, borrower profile and CV, property manager profile, background searches (if applicable).
  • Property income pro-forma and valuation:summary of income and expenses, NOI, rents and cap rate analysis.
  • Third party report review and analysis: summary of risks presented in environmental, engineering and appraisal reports.
  • Supporting documents analysis and preparation: compilation of documents into a single, easy-to-read file for the lender.

Fees for our Financing Analysis reports vary according to the complexity of the financing proposition. Please contact us for a quote at financing@linearrealestate.ca.