Buying your business's own property
Why businesses buy instead of lease
- Payments build equity in an asset instead of a landlord's.
- Control over the space, improvements and long-term occupancy costs.
- Future equity that can later secure growth financing.
Buying also ties up capital and adds property risk. Speak with your accountant and lawyer about structure (for example, whether the business or a holding company owns the property).
Typical purchase steps
- Pre-assessment: business financials, down payment source and target property type.
- Lender matching: bank, credit union, BDC, CSBFP participating lender or alternative lender.
- Offer conditional on financing; lender issues a term sheet or commitment.
- Appraisal, environmental review (if required) and building inspection.
- Conditions satisfied, lawyers close, lender funds.
Refinancing business-owned real estate
| Refinance goal | How it works | Watch for |
|---|---|---|
| Release equity for the business | New, larger mortgage; difference funds expansion or working capital | LTV limits and new payment vs. cash flow |
| Consolidate expensive debt | Pay off short-term or high-cost loans with property-secured debt | Prepayment penalties on existing loans |
| Renewal / better structure | Move to a lender with a better fit at maturity | Appraisal and legal costs |
| Exit a private or bridge loan | Replace short-term financing with longer-term financing | Timing, start well before maturity |
Documents commonly requested
- Two to three years of business financial statements and tax filings.
- Year-to-date interim financials and a debt schedule.
- Agreement of purchase and sale (purchase) or current mortgage statement (refinance).
- Property details: tax bill, leases for any tenants, recent appraisal if available.
- Personal net worth statements and ID for guarantors.
Broker, not lender. Meshesha Robel does not fund loans. Every loan is offered, approved and funded by a third-party lender under its own underwriting. Approval and terms are never guaranteed.