9-6 months before maturity
Begin gathering trailing financials and confirm your franchise agreement's remaining term and any upcoming PIP obligations.
- Order or schedule the updated going-concern appraisal
- Pull three years of financial statements and current TTM P&L
- Confirm franchise agreement expiry date and PIP status with the franchisor
- Request an updated STR/competitive set report
6-3 months before maturity
This is the window to shop the file across lender types rather than accepting the incumbent lender's first offer.
- Submit the refinance package to two to three lender types (institutional, alternative, private) for comparison
- Review DSCR and LTV under each quote against your maturing balance to identify any refinance gap early
- Confirm environmental and property condition reports are current or schedule updates if required
3-1 months before maturity
Finalize your chosen lender, work through legal documentation, and confirm payout figures with your existing lender to avoid a gap in coverage.
- Instruct legal counsel and confirm title/insurance requirements
- Lock your rate if a rate hold is available and beneficial given market conditions
- Confirm exact discharge and payout timing with the maturing lender
Common renewal mistakes to avoid
The most frequent issues we see are starting the process too late to accommodate appraisal lead times, assuming the maturing balance will automatically qualify under current DSCR requirements, and failing to address a lapsed or soon-to-expire franchise agreement before applying.
When to bring in a mortgage professional
Even owners with a good relationship with their existing lender benefit from an independent comparison at renewal, since hotel lending appetite and pricing shift meaningfully year to year — a broker who works across institutional, alternative and private lenders can identify better terms or catch a refinance gap issue while there's still time to address it.
Frequently asked questions
- Do I have to refinance with my current hotel lender?
- No, you're free to move the mortgage to a new lender at maturity, and shopping the renewal often results in better pricing or terms, particularly if your operating performance has improved since the original financing.
- What happens if my franchise agreement is expiring around the same time as my mortgage?
- Address the franchise renewal first or in parallel, since lenders will want confirmation the flag is secured before finalizing refinance terms — an expiring, unrenewed franchise agreement is a common cause of renewal delays.
- Can I renew early if rates look favourable?
- Some lenders allow early renewal or rate locks ahead of maturity, sometimes with a blend-and-extend structure; it's worth discussing 6+ months ahead of maturity if you want to capture a rate environment before it potentially changes.
Talk to a Toronto hotel financing specialist
We arrange hotel, motel and resort debt across Toronto, the GTA and Ontario — acquisitions, refinancing, construction and PIP capital, and short-term bridge loans — through banks, credit unions, secondary institutional and private lenders.