Tag Archives: commercial mortgages

…mortgages made simple…



The Ray McMillan Mortgage Team  is licensed through Northwood Mortgage Ltd. We deal with major banks, trust, life insurance, finance companies and private lenders. We are licensed to provide the most competitive mortgage rates and terms available for your real estate financing needs throughout Ontario.



  • First and second mortgages
  • Transfers
  • Condominium/Townhouse purchases
  • Home Improvement Loans
  • Construction Loans
  • Debt Consolidation
  • Refinancing
  • Power of Sale
  • Multi-residential
  • Vacant land
  • Cottages and recreational properties
  • Rural and farm properties




When we arrange a prime residential first mortgage the lender pays us a finder’s fee.This does not affect the rate our terms of the mortgage in any way.

When we arrange any other type of mortgage that does not qualify as a prime residential mortgage then the lender does not pay us. We must then charge a brokerage fee*. The fee is based on the complexity involved to arrange the mortgage.


You have mortgage questions, the Ray McMillan Mortgage Team has answers.

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Why a commercial mortgage app gets rejected

Traditional commercial banks often try to play things safe, and may be hesitant to support commercial projects considered too “unique.” Even commercial borrowers that have favourable tax returns and a sound business plan might find their applications for commercial mortgages denied. Worse, some banks will not even offer a good explanation as to why the applications were denied.

If you are looking to apply for a commercial mortgage, you might want to prepare yourself for the possible reasons banks reject applications.

Unfeasible business plans

Commercial loan officers will often ask applicants to show them their business plans. If your business plan does not seem like it can support the loan you are applying for, your application will likely be rejected. Make sure that your plan takes into consideration various payback options for the long-term loan you are applying for. Of course, you could always find a lender that is not too particular about your business plans.

Tax return issues

If the underwriter discovers something in your tax returns that violates the bank’s lending guidelines, he or she will decline your application in a heartbeat. Often, the problem might be related to low or insufficient net income, but other issues with your tax return may also raise some eyebrows. Ensure that your tax return has no problems before applying.

Lending limitations

There is often a cap to the amount of money a bank can lend. At times, a bank could limit the amount of cash it would provide you with, or even strictly detail what you can use the loan for and what you cannot. In exceptional cases, the bank might approve your loan but not lend you cash, which is as good as declining the loan altogether. If this happens to you, turn to another lender.

Insufficient or no collateral

Without collateral, the bank will outright refuse your application for a loan. Moreover, the collateral should be adequate enough to serve as a lien of your personal assets, much like with homeowners and their properties. If you have issues with this, choose lenders that do not require collaterals.

Source: Canadian Real Estate Wealth 27 Nov 2015

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