Intermediate
Sacha Gaultier
Mortgage Broker
A commercial refinance should not begin at maturity. By then, it is often too late to optimize the outcome. Ideally, the process should begin six to nine months in advance, depending on the complexity of the file, the debt structure, and the owner’s objectives.
Why so early? Because refinancing is also an opportunity to regain control, improve portfolio flexibility, and reassess the financial strategy behind the real estate holdings: unlocking equity, reducing borrowing costs, adjusting monthly payments, preparing for an acquisition, buying out partners, or restructuring debt that has become too restrictive.
The first step is to complete a full review of the portfolio: mortgage balances, maturity dates, penalties, income, estimated property values, loan-to-value ratios, and debt service coverage ratios. This analysis helps identify where the real leverage and flexibility exist within the portfolio.
Next, the objective must be clearly defined. Is the goal simply to renew? To take advantage of a favorable rate environment? To exit an expensive open term? To access an insured financing program? The answer will influence the lender selection, timing, and financing structure.
Good preparation also helps avoid unpleasant surprises: higher-than-expected rates, insufficient ratios, incomplete documentation, or debt that is difficult to refinance.
In commercial real estate, the strongest owners do not only manage their assets, they also manage their liabilities.
A well prepared refinance provides greater control, improves available options, and demonstrates disciplined portfolio management.
The real challenge is not simply obtaining a better rate. It is acting at the right time, with the right strategy.
Contact us today to discuss your real estate financing needs.
(514) 507-3990
info@maoki.ca