Commercial Mortgages in Canada.

A commercial mortgage is financing secured against income-producing or owner-occupied business property—think multi-unit residential (5+), retail plazas, industrial, office, and mixed-use. In Canada, approval is based on the building’s income (NOI), your experience, credit, net worth, and down payment. Lenders look closely at **DSCR** (debt-service coverage ratio) and **LTV** (loan-to-value). Owner-occupied deals lean more on business financials; pure investment deals lean on rent rolls and leases. We package your file to meet lender covenants and negotiate terms built for cash flow and growth. See Commercial Mortgages.

Commonly financed asset classes include **multi-family (5+ units), retail, industrial, warehouse, flex, office, mixed-use**, and certain specialty/owner-user properties. Underwriting varies by type and market: multi-family tends to attract the most competitive terms; niche assets (e.g., restaurants, hotels, churches) require stronger covenants or specialized lenders. If you’re building or repositioning, development or bridge financing may be a better fit initially, then you refinance into a term loan post-stabilization. Explore Commercial Mortgages and Land Development Financing.

Expect **20–50%** down depending on asset quality, location, tenant strength, and your experience. Stabilized multi-family or strong industrial may finance at lower down payments than specialty assets. Owner-occupied borrowers can sometimes leverage additional programs or cross-collateral. We’ll model scenarios (LTV, DSCR, amortization) to show how down payment, interest rate, and term change your cash flow and long-term returns—then match you to lenders who like your asset class. Start a plan: Commercial Mortgages.

Commercial rates reflect risk, term, and funding source. Conventional bank terms are often tied to **Gov’t of Canada bond yields** (for fixed) or **prime** (for variable). Alternative and private lenders price based on asset, leverage, DSCR, borrower strength, and exit strategy. Multi-family can qualify for sharper rates than single-tenant retail or specialized assets. We shop banks, credit unions, trust companies, and private funds so 65+ lenders effectively compete for your file. Learn more: Commercial Mortgages.

Terms often run **1–10 years** (5 years is common), with **amortizations of 20–30 years** depending on asset, lender, and covenant strength. Some loans include **interest-only** periods during lease-up or renovations; others have **step-downs** or yield-maintenance prepayment. Development or bridge loans are shorter (6–24 months) and refinance to permanent debt once NOI stabilizes. We’ll map a debt strategy—term, amortization, and prepayment—to your business plan and hold period. See Land Development Financing if you’re building.

Be ready with **rent roll, leases, T12 (trailing 12-month) income/expenses, NOIs**, photos, and a recent appraisal (or lender-ordered one). For owner-occupied: business financials (2–3 years), interim statements, business plan, and projections. For all deals: borrower net-worth statement, personal credit, corporate structure, and proof of down payment. Environmental reports (ESA Phase I/II) and building condition assessments may be required depending on asset and lender. Get the checklist: Commercial Mortgages.

**DSCR (Debt-Service Coverage Ratio)** measures a property’s ability to cover debt payments: **DSCR = NOI ÷ annual debt service**. A DSCR of 1.20× means $1.20 of net income for every $1 of mortgage payments. Many lenders require **≥1.20–1.30×**, higher for riskier assets. If DSCR is tight, lenders may lower the loan amount, shorten amortization, or adjust rate. We’ll advise on rent, expenses, and capital planning to improve DSCR and unlock better terms. See Commercial Mortgages.

Yes. **Owner-occupied** underwriting leans on the operating business—financial statements, debt ratios, and industry risk—plus property value. **Investment** underwriting is property-centric—NOI, leases, tenant quality, and market vacancy. Personal guarantees are common in both, though strength of the covenant can reduce requirements. If you’re growing fast, we may pair an owner-occupied mortgage with a working-capital or equipment facility. Explore Business Loans alongside your property financing.

With complete documents and a clean asset, **30–60 days** is typical; complex files (environmental, strata/condo docs, construction, unique assets) can take longer. Speed depends on appraisal/ESA timing, lawyer turnaround, and lender queue. We run a tight checklist from day one—ordering third-party reports early and clearing conditions in parallel—so your term sheet becomes funding, not frustration. Start here: Commercial Mortgages.

Budget for appraisal, environmental (ESA), legal fees, lender/broker fees (deal-dependent), title insurance, registration, and potential commitment or standby fees. On income assets, you’ll also provide estoppels/SNDA where applicable. Total costs vary with deal size and complexity; we’ll estimate up front and negotiate where possible. For construction or land, expect additional surveys, engineering, and development charges. Compare options: Commercial Mortgages and Land Development Financing.

Yes. Once income stabilizes or values rise, you can **refinance** to lower your rate, extend amortization, or extract equity for acquisitions, renovations, or working capital. Lenders will re-underwrite DSCR, LTV, tenancy, and market conditions. We’ll time the appraisal and lease rollovers to maximize proceeds and minimize prepayment costs, then structure the exit to align with your growth plan. Talk refinance strategy: Commercial Mortgages.

Absolutely. Many of our clients are **entrepreneurs, franchise owners, contractors, medical professionals, and newcomers to Canada**. We package alternative income evidence (bank statements, contracts, lease agreements, corporate returns), strengthen covenants, and align lender selection with your profile. For newcomers with limited Canadian credit history, we’ll document global track records and assets, and target lenders who welcome international experience. Explore Business Loans and Commercial Mortgages.

**Construction** financing funds land + hard/soft costs during build; interest is usually interest-only, advanced in draws. **Bridge** financing covers short windows—acquisition, lease-up, or value-add—until stabilization. **Term** financing is your longer, lower-rate “permanent” mortgage once NOI is stable. We’ll design the stack—equity, mezz, and senior debt—so your project moves from blueprint to stabilized asset smoothly. See Land Development Financing.

Prepayment terms vary: **3-2-1% step-downs**, **interest-rate differential (IRD)**, or **yield maintenance** are common. Some loans allow partial prepayments annually or on rate-reset dates; others require a full assumption by a buyer. We model the penalty math against future rate scenarios and your hold period, so you aren’t boxed-in when opportunity knocks. Plan ahead: Commercial Mortgages.