How Manulife One for Business works
How much can you borrow? Manulife Bank will lend up to 65 per cent of the market value of your property (defined as lower of appraised value and purchase price).
What are the limits? Loan limits range between $250,000 to a maximum of $5,000,000
What types of properties qualify? Buildings that qualify include multi-residential properties, office buildings, condos, retail plazas and light industrial properties.
What types of properties don’t qualify? Buildings that don’t qualify include nonprofits, environmentally sensitive facilities, hospitality industry, raw land and real estate developments.
How is the account structured? The main account is a variable rate account you use for deposits and withdrawals. The size of the main account varies by business, but is limited to no more than 50 per cent of market value of the property. Additional borrowings are available through a choice of sub-accounts. See table below.
| Maximum credit line |
Example of less than maximum credit line |
|||
|
$ |
Loan to value % |
$ |
Loan to value % |
|
|
Market value of property |
$1,000,000 |
|
$1,000,000 |
|
|
Main account (credit line) |
$500,000 |
50% |
$300,000 |
30% |
|
Amortizing sub-account |
$150,000 |
15% |
$350,000 |
35% |
|
TOTAL LOAN |
$650,000 |
65% |
$650,000 |
65% |
How is interest paid? The credit line has no fixed amortization and paying interest monthly is acceptable. The sub account requires monthly payments of principal plus interest.
Do you have to move all your business to Manulife Bank? No. We’ll work with you to determine what makes the most sense for your business.
Does your building qualify?
Review the following four sections to determine if your commercial property qualifies as collateral for M1B:
ELIGIBLE PROPERTIES
Office building
Retail plaza, strip mall, shopping centre
Light industrial
Multi-residential property (single title with five or more units)
INELIGIBLE PROPERTIES
Environmentally sensitive business e.g., gas station, auto repair, autobody, dry cleaner
Single use / hospitality e.g., parking lot, self-storage, car dealership, movie theatre, hotel, restaurant, bar, golf course
Medium or heavy industry e.g., mining, manufacturing, agriculture
Real estate development e.g., property under construction, speculative property, vacant land, leased land
Not-for-profit organizations
APPROVED LOCATIONS:
If owner-occupied building housing an operating business, owner must have managed business for a minimum of 3 years.
If investment property, owner must have minimum 3 years experience managing investment properties.
How much are you looking to borrow?
| Minimum loan: $250,000 | 65% loan to value | Minimum market value for minimum loan: $385,000 |
| Maximum loan: $5 million | 65% loan to value | Minimum market value for maximum loan: $7.7 million |
Ready to manage cash flow on your terms?
Talk to your advisor or contact your Business & Insurance Lending Specialist today.