3015 Discovery Street, Vancouver, BC V6R 3Y8 | Phone: 604-221-2322
Today's Rate [Feb, 09, 2012]
Prime Rate: 3.00%
GOC 5-yr Bond Yield: 2.358%
Prime Rate: 3.00%
GOC 5-yr Bond Yield: 2.358%
| Term | Our Rate | Bank Rate |
| 1 year closed | 2.75 | 3.50 | 2 year closed | 2.84 | 3.55 | 3 year closed | 2.99 | 4.05 | 4 year closed | 3.19 | 4.79 | 5 year closed | 3.25 | 5.29 | 7 year closed | 3.99 | 6.35 | 10 year closed | 4.49 | 6.75 | Vars.(5yrs) | P-0.20 | Prime | Vars.(5yrs open) | - | - | Line of Credit | P+0.50 | - |
First Mortgage
The lender has the first claim on your property to secure the loan it has advanced to you. The interest rate, terms and conditions will depend on how strong you are as a borrower (ie. repayment ability, credit history, quality of the property, and other factors). Generally, where the lender assumes higher default risk, the interest rate will be higher to compensate the lender.
Closed (Fixed) Mortgage - you can lock in the interest rate for a fixed term ranging from 6 months to 10 years. You have the security of knowing exactly how much your mortgage payment is every month. In the case of prepayment over and above the maximum amount allowed by the lender (eg. 20% of the original principal), a penalty is required (eg. 3 months' interest).
Open Mortgage - you have the flexbility of paying off the mortgage whenever you wish. For this previlege, the interest is usually higher, variable, and tied to bank prime rate.
Variable Rate Mortgage - your payment is based on a floating interest rate set close to bank prime, for a term of 3 to 5 years. Depending on the lender and product, your payment can be fixed or fluctuating. If you opt for fixed payment, the interest component of your mortgage payment will increase if the interest rate goes up. Under the variable payment scenario, your mortgage payment will increase if the rate goes up.
Second Mortgage
When first mortgage financing is insufficient but the first lender is unwilling to advance additional funds, a second mortgage may be the solution. The typical second mortgage lender will lend up to about 80% of the property value, depending on market conditions. Because the second mortgage lender has a subordinated charge on the property behind the first lender and assumes greater default risk, the second mortgage lender charges significantly higher interest rates and fees. This type of financing is usually intended to be a short term solution. We can advise what is right for you.
Subordinated Debt (Mezzanine Financing)
Mezzanine financing refers to a “hybrid” class of financing between conventional bank debt (with defined interest rate) and equity investment (with no guaranteed returns but unlimited growth/loss potential). This type of financing can be utilized in commercial property purchases or financing business acquisition and growth. Ask us how you can structure sub-debt financing.
The lender has the first claim on your property to secure the loan it has advanced to you. The interest rate, terms and conditions will depend on how strong you are as a borrower (ie. repayment ability, credit history, quality of the property, and other factors). Generally, where the lender assumes higher default risk, the interest rate will be higher to compensate the lender.
Closed (Fixed) Mortgage - you can lock in the interest rate for a fixed term ranging from 6 months to 10 years. You have the security of knowing exactly how much your mortgage payment is every month. In the case of prepayment over and above the maximum amount allowed by the lender (eg. 20% of the original principal), a penalty is required (eg. 3 months' interest).
Open Mortgage - you have the flexbility of paying off the mortgage whenever you wish. For this previlege, the interest is usually higher, variable, and tied to bank prime rate.
Variable Rate Mortgage - your payment is based on a floating interest rate set close to bank prime, for a term of 3 to 5 years. Depending on the lender and product, your payment can be fixed or fluctuating. If you opt for fixed payment, the interest component of your mortgage payment will increase if the interest rate goes up. Under the variable payment scenario, your mortgage payment will increase if the rate goes up.
Second Mortgage
When first mortgage financing is insufficient but the first lender is unwilling to advance additional funds, a second mortgage may be the solution. The typical second mortgage lender will lend up to about 80% of the property value, depending on market conditions. Because the second mortgage lender has a subordinated charge on the property behind the first lender and assumes greater default risk, the second mortgage lender charges significantly higher interest rates and fees. This type of financing is usually intended to be a short term solution. We can advise what is right for you.
Subordinated Debt (Mezzanine Financing)
Mezzanine financing refers to a “hybrid” class of financing between conventional bank debt (with defined interest rate) and equity investment (with no guaranteed returns but unlimited growth/loss potential). This type of financing can be utilized in commercial property purchases or financing business acquisition and growth. Ask us how you can structure sub-debt financing.
TestimonialsI approached ADM for a commercial loan. From numerous brokers, I chose to work with ADM because I had a favorable impression of the company for professionalism and reliability. They met my expectations. Throughout the process, Sunny and Han provided advice and direction. They kept me well informed and got things done. I will rely on them again for future business ventures and projects.
- Y.S. Choo, Chetwynd -