Commercial Mortgage FAQs

It depends on volumes, but it takes an average of 6-8 months.

The down payment is the portion of the purchase price that the borrower pays upfront from their own resources. It is the difference between the purchase price and mortgage loan amount. 

The documents required to verify the source of your down payment funds may include:

• Bank statements
• Investment account statements
• Proof of gifted funds from immediate family
• Equity take‑out documentation
• Refinance agreements
• Line of credit statements
• Sale agreement of an existing property

Payment frequency changes are not permitted for commercial mortgages.

Borrowers may request a payout quote directly. All payout quotes are provided for indicative purposes only, are not binding, and are valid only on the date of issuance.

Borrowers and their lawyer or notary can request a payout statement directly from our department. Once a request is made, our Payout team will contact the requestor with a detailed list of required documents related to the registered security. After all required documentation is received, your request will be reviewed and processed within approximately 10 business days.

To confirm your prepayment options for your mortgage, please review your commitment letter or latest signed renewal agreement. Your prepayment option will be one of the following:

1. Fully Closed Mortgage
   No prepayment allowed. There is no right right to repay the mortgage loan before the maturity date of the outstanding balance, whether in whole or in part.
2. Closed mortgage with prepayment for a charge 
   The right to prepay outstanding principal is at any time during the term, subject to Prepayment penalty. A charge of the greater of either three months’ interest or an interest rate differential based on Government of Canada bond yields is applicable. This calculation shall be determined by the lender. 
3. Open mortgage with prepayment at no additional charge
   The right to prepay outstanding principal is at any time during the mortgage term.

Your appointed solicitor should provide the following required documents along with any payout request: 

 For Subject property/properties located in QC:

1. A cover letter confirming repayment date, reason for payment, borrower's name, civil status, legal status, and a clear overview of the instruments and addresses needed for repayment
2. Index aux immeubles 
3. RDPRM search report, a search of the personal property registry – for all parties with a legal interest in the mortgage
4. Formulaire de radiation (RDPRM)/Radiation Volontaire [Official Copy] 
5. Quittance

For subject property/ properties located in any other province

1. A cover letter confirming the payout date requested, payout reason, borrower name(s), the civic address(es) and legal description(s) of the property, and a clear outline of the instruments and addresses required for the discharge
2. Land Titles Office sub-search 
3. A Personal Property Registry (PPR) search for all parties with a legal interest in the mortgage

A payout statement is valid until the end of the fifth business day following the date of issuance. For example, a payout statement issued on Monday, March 6 is valid until the close of business on Monday, March 13. Any subsequently issued payout statement will replace and supersede the prior statement. 

After your mortgage has been discharged, our appointed service provider, FNF, will process the discharge registration and send confirmation to the appointed solicitor(s) by email. Timing may vary depending on land registration processing. 

We begin contacting borrowers well in advance of their mortgage maturity to allow enough time for review, documentation, and rate-lock options. The exact timing varies depending on the renewal cycle and mortgage type, but most borrowers hear from us 60–120 days before maturity.

We typically require the following documentation to process a renewal:

• An updated rent roll of the mortgaged property
• The most recent operating statement for the property
• The most recent financial statements for all borrowers and guarantors
• Written notice of any changes to ownership or guarantors
• Confirmation that there have been no material adverse changes to the property’s financial performance, ownership structure, or overall risk profile since the prior renewal or mortgage origination

Additional information may be requested if there have been material changes to the property.

We offer a range of CMHC-insured and conventional renewal options to support different financing needs. Our primary options include:

Renewal Options

• Short-Term Open Renewal: Typically, 6 months (or 12 months in select cases). An open term allows flexibility prior to selecting a longer-term structure.
• Pooled Long-Term Renewal (5 or 10 Years): Two structures may be available, subject to internal and CMHC approval:
  a)    Long-Term Closed (With Prepayment Privileges) - Prepayment penalties apply if paid out prior to maturity.
  b)    Long-Term Closed (No Prepayment Privileges) - Mortgage cannot be paid out or closed during the term.
• Prepayment Terms: Prepayment terms and conditions vary by structure. Your Renewal Specialist will be able to explain the applicable prepayment provisions and any restrictions based on your specific mortgage.
• Other Options: Additional renewal options may be available. Your Renewal Specialist will be able to guide you be based on your mortgage, timing, and eligibility.

Renewal rates are determined based on prevailing market conditions, the selected term, and lender and CMHC requirements at the time of renewal. Rates are provided subject to our review and may change until your renewal is finalized. 

If we do not receive renewal instructions or required documentation before your mortgage’s maturity date, the mortgage may be temporarily renewed into a short-term open structure in accordance with our policies. If the maturity date falls on a non-business day, processing will occur on the next business day. 

No. Accessing additional funds requires a refinance, which is a separate transaction from a standard mortgage renewal. A renewal only extends the term of your existing mortgage and does not increase the mortgage amount.

For CMHC-insured mortgages, a refinance requires a full application, updated documentation, and CMHC approval. Approval is subject to underwriting criteria and the mortgage being in good standing.

We engage a specialized third-party provider to conduct these reviews. The entire fee goes directly to them for their professional services. Our organization does not retain any portion of this fee.

The insurance review confirms that the policy complies with the mortgage agreement, provides adequate coverage limits, and includes appropriate endorsements and exclusions.

You’ll receive clear recommendations to update your policy. Failure to update your policy may result in your file being forwarded to our default management team.

Annual reviews are a standard requirement for all commercial mortgages. They enable the lender to assess the property’s performance, review updated borrower financial information to ensure capital adequacy, and confirm compliance with mortgage covenants and mandatory CMHC requirements, if applicable. Annual reviews also help identify potential risks early, supporting the long-term health and stability of the financing.

Within 120 days of the borrower’s fiscal year-end (or calendar year-end for individuals).

The mortgage may be reported to CMHC as a technical default if the submission deadline is missed and a non-compliance fee may become due and payable.

• Borrower, guarantor, and beneficial owner’s financial statements, as outlined in the CMHC Certificate of Insurance if applicable
• Property operating statements 
• Current rent roll (signed and dated by the borrower)

Your first annual review will take place after the first fiscal year-end following the advance of your mortgage. This timing ensures we collect your financial statements promptly. 

The lender initiates the process based on the borrower’s fiscal year-end. 

Peoples Trust tries to contact the borrower(s) at regular intervals to remind them about their submission deadline, but submission of required documentation is the borrower's responsibility.

These mandatory annual requirements are ongoing reporting and compliance obligations set out in your CMHC Certificate of Insurance (COI). Borrowers are required to provide specified documentation on an annual basis to demonstrate continued compliance with the COI. 

In addition to financial statements, operating statements, and rent rolls, borrowers must satisfy all other applicable conditions, outlined below:

• Financial statements 
• Operating statements 
• Rent roll 
• Replacement reserve fund 
• Flex program affordability housing criteria 
• MLI social outcome affordability criteria 
• Capital expenditures (REITs) 
• Ring fencing of assets 
• Equity retention 
• Rental housing agreement and covenant
• Homeowner association fees 
• Care facility documentation 
• Post-tension report

The financial statements required are outlined in your CMHC COI. Borrowers must submit financial statements as required to allow us to assess compliance and complete the annual review.

Acceptable statements may include management‑prepared statements, compilation engagement (notice to reader) statements, review engagement statements, or audited financial statements, depending on the COI requirements

Once documents are submitted, we assess the completeness of the documents. If the documents are complete, we complete the annual review. We may ask for additional documents to complete the annual review. 

Once all required documents are received, the annual review will be processed and completed. If you have not received confirmation within a reasonable timeframe, please contact your servicing representative for assistance.

Once all required documentation is received, the annual review is typically processed within one business day. If any information is missing or unclear, additional time may be required pending receipt of the requested documentation. Timely completion largely depends on the accuracy and completeness of the documents submitted by the borrower.

The annual review fee amount is indicated in the fee schedule provided with your mortgage documentation. A non-compliance fee per mortgage (or as otherwise indicated in the fee schedule provided with your mortgage documentation) is applied when required documents are not submitted by the deadline. These fees reflect rising administrative costs, including detailed property analysis, extensive reporting, and meeting mandatory regulatory and audit requirements. 

No, only one fee will be applied per mortgage per year. If a non-compliance is applied due to late or missing submissions, the annual review fee will not be applied, even if the documents are eventually submitted.

Email: [email protected] 
Phone: 1-800-886-2055

To comply with PCMLTFA rules and regulations, we may request a range of information and documentation to understand and verify the parties involved, the ownership and control structure, and the nature of the business relationship. This may include, but is not limited to:

• Verifiable government identification
• The borrower(s)/guarantor(s) information including name, address, date of birth, contact person (entity), occupation (individual)/nature of business (entity)
• The shareholders register for the entity (borrower/guarantor) to verify the ultimate beneficial owner 
• An executed limited partnership agreement if the borrower or guarantor is a limited partnership
• Borrower’s source of funds and wealth, including verification of income and supporting financial statements
• Family trust deed

An organization chart is not always required for AML verification; however, it may be requested to help confirm and understand ownership structure, particularly where the structure is complex. For CMHC-insured mortgages, where an organization chart is required under the CMHC COI, it must accurately reflect the borrower’s current ownership structure and shareholder register.

No. Beneficial owners cannot be other corporations, trusts, or other entities. They must be the individuals who are the owners or controllers of the entity.

• For corporations: the individual name of all directors of the corporation and the name, occupation, date of birth and address of all persons who directly or indirectly own or control 25% or more of the shares of the corporation
• For trusts: the individual name, occupation, date of birth and address of all trustees and all known beneficiaries and settlors of the trust including their name and address
• For widely held or publicly traded trusts: the individual name, occupation, date of birth and address of all trustees of the trust and the name, occupation, date of birth and address of all persons who directly or indirectly own or control 25% or more of the units of the trust
• For entities other than corporations or trusts: the name, occupation, date of birth and address of all persons who directly or indirectly own or control 25% or more of the entity

Consent is required to comply with privacy regulations and authorize the release of sensitive financial information. All parties named in the commitment letter (including borrowers, co-venturers, and guarantors) must sign the Third-Party Consent Form.

If the consent form is incomplete or missing signatures, Peoples Trust cannot process any requests until all required signatures are obtained.

 As soon as possible. To avoid any problems with obtaining required signatures, please let us know of any changes to signing authorities before they are finalized so we can update our records and any documents accordingly.

Any party listed in the commitment letter. If signed by someone else, a Third-Party Consent Form must accompany the letter.

First, contact your property insurance provider and submit your damage claim if applicable and as directed. After reporting to your property insurance provider, please send all claim documents to [email protected].   

All requests must be submitted via email to the appropriate team:

Bank Statements / Bank Confirmations
[email protected]

Insurance 
Updates or Cancellations
[email protected]

Mortgage Services 
Arrears Notifications, Borrower Address or Contact Changes, Payment Change Requests
[email protected]

Annual Review
[email protected]

PTC Multifamily Mortgage Renewal       
[email protected]