Commercial Mortgages
Financing for multi-unit residential, mixed-use, retail, office, and industrial properties, plus construction, land acquisition, and refinancing for owners already in the market.
Multi-Unit Residential
Financing for apartment buildings and purpose-built rental properties, from small multi-plexes to larger portfolios. Properties with 5 or more units can qualify for CMHC's MLI Select program, with down payments as low as 15% and amortizations extending up to 40, or in some cases 50, years.
Mixed-Use, Retail & Office
Financing for mixed-use buildings, street-level retail, office space, and other income-producing commercial real estate. Conventional commercial properties typically require 20 to 35% down, with amortizations commonly running 15 to 25 years.
Construction & Land Financing
Land acquisition financing and progress-draw construction mortgages, with funds released in stages as milestones are completed, plus a take-out mortgage arranged once construction wraps up. As with residential builds, Ontario's Construction Act requires a holdback on each draw, and builder's risk insurance is required throughout the build.
Refinancing & Renewals
For owners who already hold commercial property: refinancing to access equity, renewing at maturity, or switching lenders for better terms. Commercial mortgage terms typically run 1 to 10 years, much shorter than the amortization period, so most owners renew or renegotiate financing multiple times over the life of a property.
What Could You Borrow?
Commercial lenders qualify a deal mainly on the property's own income, using the Debt Service Coverage Ratio (DSCR), not your personal income. Enter a property's numbers below to see roughly what loan amount it could support. Want the details on how this works? Read Understanding DSCR.
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This is a plain-language estimate, not a pre-approval. It applies a 5% vacancy allowance to gross rental income, and uses the required DSCR for the financing type you select (1.25 for conventional, the middle of the typical 1.20 to 1.30 range; 1.10 for CMHC MLI Select) to find the maximum loan your property's income could support. It separately checks the maximum loan your down payment supports, using minimum down payment rules by property and financing type (20% for conventional multi-family, 30% for conventional retail/office/industrial/mixed-use, or 15% for CMHC MLI Select), and shows whichever of the two actually limits the deal. CMHC MLI Select is only available for multi-family properties with 5 or more units. Let's confirm the full picture together before you rely on this number.
Commercial Mortgage FAQ
Common Questions
- How much down payment is required for a commercial mortgage?
- Conventional commercial properties typically require 20 to 35% down, though multi-family properties with 5 or more units can qualify for CMHC's MLI Select program with as little as 15% down.
- What amortization periods are available on commercial mortgages?
- Conventional commercial deals commonly amortize over 15 to 25 years, while CMHC-insured multi-family properties under MLI Select can extend up to 40 or even 50 years in some cases.
- Is the mortgage term the same length as the amortization on a commercial mortgage?
- No. Terms are typically 1 to 10 years, while amortization (the time to fully pay off the loan) is usually much longer, meaning you will renew or renegotiate the mortgage multiple times over its life.
- What types of properties qualify for commercial financing?
- Multi-family buildings, mixed-use properties, retail, office, industrial space, and land, among others. Each property type has its own typical down payment and rate ranges.
- How are commercial mortgage rates determined?
- Rates depend heavily on property type, loan-to-value, whether the mortgage is CMHC-insured, and the strength of the property's income (or the borrower's covenant, for owner-occupied purchases).
- Do I need to show the property's income to qualify?
- Yes, for income-producing properties, lenders assess whether the property's net operating income adequately covers the mortgage payments (its Debt Service Coverage Ratio), in addition to reviewing the borrower's overall financial strength.
- What is CMHC MLI Select, and does my property qualify?
- It is a CMHC insurance program for multi-family properties with 5 or more units that rewards certain features, like affordability or energy efficiency, with lower down payment requirements and longer amortizations.
- Can I get a commercial mortgage as a self-employed or business-for-self borrower?
- Yes, though documentation requirements are more detailed, typically including business financials, and stated income options exist here too, similar to residential business-for-self programs.
- How long does it take to close a commercial mortgage?
- Commercial deals generally take longer than residential mortgages to close, often 6 to 12 weeks or more, due to more extensive underwriting, appraisals, and environmental or property assessments.
- Should I work with a broker for a commercial mortgage instead of going directly to a bank?
- A broker can access a wider range of commercial lenders, including those specializing in specific property types, which often results in better terms than approaching a single bank directly.
Access to lenders who specialize
A broker can access a wider range of commercial lenders, including those who specialize in specific property types, which often results in better terms than approaching a single bank directly.
Commercial deals generally take longer to close than residential mortgages, often 6 to 12 weeks or more, due to more extensive underwriting, appraisals, and environmental or property assessments. Having an experienced broker manage that process end-to-end, and match you with the right lender for your property, makes a real difference.
Apply Now Talk to UsReady to talk financing?
Every commercial property and every deal is different. Reach out and we'll walk through your property, your goals, and the lenders best suited to get it financed.