Banks Declined. Private Lenders Charged 10%+. We Cut His Rate in Half.
A commercial property owner in Metro Vancouver was carrying two private mortgages on his strata office unit at double-digit interest rates. Making interest-only payments left the principal untouched, and conventional banks had already declined him more than once. He came to Mortgage Guru looking for a commercial mortgage exit strategy.
The Situation
A commercial property owner in Metro Vancouver was carrying two private mortgages on his strata office unit at double-digit interest rates. Making interest-only payments left the principal untouched, and conventional banks had already declined him more than once. He came to Mortgage Guru looking for a commercial mortgage exit strategy.
The Challenge
The challenge was finding a lender willing to qualify the file after multiple bank declines, while also creating a path for the borrower to reduce both his monthly cost and total debt.
The Solution
Mortgage Guru moved the file to an alternative commercial mortgage lender through a limited commercial pilot program we were invited into — one of only a small number of brokers in Canada with access. The new commercial mortgage rate was roughly half of what he had been paying on the private side, and the structure switched from interest-only to principal-and-interest payments, so he began paying down the mortgage balance. We also used debt consolidation to clean up additional obligations, positioning him for a future prime-lender refinance.
The Outcome
the borrower cut his interest rate in half, replaced double-digit private mortgage costs with a more affordable alternative commercial mortgage, and improved his credit and cash flow. Once his trailing financials support bank-grade debt-service coverage, the plan is to refinance into a prime lender — one broker, one custom plan, from private exit to prime placement.
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