IFIndustrial FinancingMortgages · Toronto & GTA

Existing mortgages

Refinancing & renewing industrial mortgages

A maturity date is a decision point, not a formality. Review the market, your building and your goals before the renewal letter arrives.

Renewal

Stay with your current lender at maturity on new terms. Often the simplest path, but the offer is worth benchmarking.

Refinance / switch

Replace the mortgage with a new lender or structure, for example to change amortization, term, or covenants.

Equity take-out

Borrow against value the building may have gained, subject to appraisal and lender criteria, to fund expansion or another acquisition.

Why review before you renew

Industrial properties often change a great deal over a mortgage term. Leases roll over, rents are reset, your business grows, or the building is improved. A renewal is the moment when those changes can be reflected in your financing, but only if you look before signing.

Your current lender's renewal offer is based on its own policies and appetite. Other lenders may view the same property differently. Equally, switching involves new underwriting, appraisal and environmental reports, legal costs, and potentially a discharge process, so the comparison has to be honest about costs and timing.

Check your current mortgage terms early. Commercial mortgages frequently include prepayment restrictions or penalties. Knowing your maturity date, open period and any penalty is the first step in any refinance conversation.

Situations that commonly prompt a refinance

  • A major tenant has signed a new long-term lease, improving the income profile.
  • A building was bought with short-term or private financing and has since been stabilized.
  • The owner wants to fund capital improvements, roof, HVAC, dock equipment, power upgrades.
  • Equity is needed for business expansion or another property purchase.
  • Multiple mortgages or lenders need to be consolidated.
  • The current lender's renewal terms or covenants no longer fit the business.

The refinancing & renewal process

  1. 01

    Maturity & goals review

    Confirm maturity date, prepayment terms and what you want the next term to accomplish, lower cost, more flexibility, more capital, or simplicity.
  2. 02

    Updated property & borrower picture

    Gather current leases, financials and property details. Changes since the last financing often matter most.
  3. 03

    Benchmark the renewal offer

    Compare your current lender's offer against what other suitable lenders indicate, taking switching costs into account.
  4. 04

    Lender selection & commitment

    If a new lender is chosen, review the commitment's conditions, fees and covenants carefully before accepting.
  5. 05

    Reports & legal

    New lenders typically require an updated appraisal and environmental review. Lawyers coordinate the payout and new security.
  6. 06

    Funding

    The new mortgage funds and the previous one is discharged, or, for a renewal, the new terms take effect at maturity.

All refinancing and renewal outcomes are subject to lender underwriting and approval and vary by individual file. See also the FAQ.

Consultation

Mortgage maturity on the horizon?

Share the property, the timeline and what you're trying to achieve. You'll get a straightforward conversation about how lenders are likely to look at it and what to prepare.