Frequently Asked Questions
Commercial mortgageFAQ
Straight answers on commercial mortgages, CMHC MLI Select, construction financing, and private lending across Alberta and British Columbia. Below is more details on Commercial Mortgage FAQ.
Commercial Mortgages
What types of commercial properties do you fund in Alberta and BC?
We arrange financing across all major commercial asset classes. This includes multi-family residential developments, industrial buildings, logistics warehouses, retail plazas, mixed-use properties, and land optimization or construction projects within active Western Canadian markets.
What are your typical deal sizes and loan structures?
Our core commercial mortgage deal sizes generally range from $2M to over $18M+. Depending on the unique needs of your project, we structure permanent long-term financing, short-term bridge loans, construction financing, equity take-outs, and seamless transitions into CMHC-insured debt.
How does Max Capital Financial ensure fast approvals compared to traditional banks?
Traditional banks involve dense, bureaucratic credit committees that cause costly project delays. Max Capital Financial eliminates this friction through direct lender access and an agile, professional underwriting framework. This allows us to rapidly assess asset metrics and deliver firm funding commitments when timelines are tight.
CMHC MLI Select
What are the primary benefits of using CMHC MLI Select for multi-family financing?
MLI Select uses a points-based incentives system focused on affordability, energy efficiency, and accessibility to unlock premium financing terms. Achieving higher point thresholds grants you access to loan-to-value (LTV) ratios up to 95%, extended amortization periods up to 50 years, lowered debt service coverage (DSC) requirements down to 1.10, and significantly reduced CMHC insurance premiums.
How do developers qualify for the maximum incentives under the MLI Select point system?
Points are accumulated based on commitments to three specific scoring categories: keeping rent thresholds affordable for at least 10 years, improving energy efficiency over baseline building codes (ranging from 15% to 40%+ efficiency gains), and designing accessible units. Securing 100 points across these categories maximizes your amortization space and minimizes your required equity input.
Construction Financing
What is the maximum loan-to-cost (LTC) available for development projects, and how is it structured?
For premium multi-family or commercial developments, we can structure custom capital stacks that achieve up to a 95% Loan-to-Cost (LTC) ratio. This is typically accomplished by combining a core first-ranking construction mortgage with a structured mezzanine layer or secondary equity take-out, maximizing your liquidity and capital efficiency throughout the build.
How does Max Capital Financial expedite the construction draw process to prevent project delays?
Traditional banks tie up progress draws in rigid, multi-layered credit committee reviews that stall site progress. Max Capital Financial eliminates this bottleneck through direct lender networks and agile underwriting frameworks. Once the project monitor confirms work-in-place percentages, draws are processed rapidly to maintain steady site momentum and keep trades paid.
Private Lending
When should a commercial borrower utilize private lending options over institutional debt?
Private lending is the ideal bridge when speed, flexibility, or non-traditional underwriting is required. It is highly effective for rapidly seizing time-sensitive land acquisitions, funding complex bridge scenarios, navigating transitional properties that do not yet meet institutional criteria, or unlocking capital quickly when bank red tape risks killing a deal.
What are the typical terms, structures, and timelines for private commercial mortgages?
Private commercial financing focuses heavily on the underlying asset equity and exit strategy rather than rigid historical cash flows. Timelines to fund are exceptionally fast, often executing within days. These loans are typically structured as short-term bridge debt (1 to 2-year terms) with interest-only structures, operating under a transparent framework where advisory fees are $0 until your loan successfully funds.
Commercial Mortgage FAQ
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No deposits · No fees until funded
