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Home › Commercial Mortgages in Canada

Commercial Mortgages in Canada

One application. 7 lenders from our 50+ network. Funded in 24 to 48 hours.

7 lenders in our network fund commercial property. Borrow $15,000 to $100 million at 4.04 to 16% APR, with funding as fast as 48 hours. Every lender is subject to the 35% federal rate cap. Rates reviewed August 2026.

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Amount: AnyCredit: Any Province: Any Sort: Recommended
★★★★★ 4.6 (9)
Amount
$50,000 - $10,000,000
Rate
From 4.09% APR
Terms
6 - 60 months
Funding
168 hours
Apply Now View profile
Best for Borrowers who want brokered access to multiple lenders and a short term option · Mortgage
★★★★★ 4.6 (9)
Amount
$15,000 - $10,000,000
Rate (APR)
6 - 16% APR
Terms
12 - 60 months
Funding
168 hours
Apply Now View profile
Best for Ontario homeowners who need a small equity takeout that larger lenders will not write · Mortgage
★★★★★ 5.0 (50)
Amount
$20,000 - $100,000,000
Rate
From 4.99% APR
Terms
12 - 60 months
Funding
48 hours
Apply Now View profile
Best for Ontario and BC homeowners taking a large equity position out of their property · Mortgage
★★★★★ 4.7 (9)
Amount
$20,000 - $10,000,000
Rate
From 4.99% APR
Terms
60 - 72 months
Funding
168 hours
Apply Now View profile
Best for Ontario homeowners who want a five to six year term on a mortgage or equity takeout · Mortgage
★★★★★ 4.7 (9)
Amount
$50,000 - $100,000,000
Rate
From 4.09% APR
Terms
72 - 120 months
Funding
48 hours
Apply Now View profile
Best for Ontario borrowers wanting a long amortization or a very large mortgage · Mortgage
★★★★★ 4.6 (9)
Amount
$50,000 - $10,000,000
Rate
From 4.99% APR
Terms
12 - 120 months
Funding
168 hours
Apply Now View profile
Best for Borrowers who want one digital application shopped across multiple lenders, with home equity available too · Mortgage
★★★★★ 4.6 (9)
Amount
$50,000 - $10,000,000
Rate
From 4.04% APR
Terms
60 months
Funding
48 hours
Apply Now View profile
Best for Borrowers who want the lowest published mortgage rate and a fully digital process · Mortgage

How commercial underwriting differs

The lender underwrites the property's income rather than your salary, which changes every number in the transaction.

Down payment 25% to 35%, against 5% to 20% on residential.
Term One to five years, shorter than residential.
Amortization 15 to 25 years.
Central test Debt service coverage from the rent roll, not personal income.
Qualifying properties. Multi-unit residential above five units, office, retail, industrial and mixed use.
Owner occupied. Often easier to finance than pure investment property, because the lender can assess your business income alongside the rent.
Documentation. Rent roll, leases, operating statements, an environmental assessment on industrial property, and an appraisal.
Timeline. Weeks rather than days. Start early if a closing date is fixed.
Reflects standard commercial lending practice in Canada. Terms vary by lender and property type.

Commercial lending assesses the property's income, not yours

The fundamental difference from residential. A commercial lender looks at whether the property services its own debt.

Debt service coverage ratio is the central metric: net operating income divided by annual debt service. Most lenders want a meaningful cushion above 1.0, so the property must generate materially more than the payment.

Loan-to-value is lower than residential. Expect to contribute considerably more equity than a home purchase requires.

Amortisation is shorter, and the term rarely matches the amortisation, so a balloon at term end is normal and refinancing is planned rather than optional.

Property type drives the terms

Lender appetite varies sharply by asset class. Multi-residential is generally the most financeable, with the longest amortisations and best leverage. Industrial and retail follow. Special-purpose properties, where the building suits one use only, are the hardest and carry the lowest leverage.

Owner-occupied commercial sits differently again, since the business occupying the space is part of the credit assessment.

What the process requires

Longer and more document-intensive than residential, and the timeline surprises first-time commercial borrowers.

  1. Rent roll and leases. Remaining terms and tenant covenant quality drive the appraisal
  2. Two to three years of operating statements
  3. Environmental assessment. A Phase I is standard, and a Phase II if it flags anything. This can add months
  4. Building condition report on larger assets
  5. Appraisal, which on commercial is a longer exercise than residential

Budget for this taking considerably longer than a residential purchase.

Common questions

How much down payment does a commercial mortgage require?

Substantially more than residential. Leverage depends on property type, with multi-residential generally the most favourable.

What is a debt service coverage ratio?

Net operating income divided by annual debt service. Lenders want the property generating more than the payment, with a cushion.

Are commercial mortgage rates higher?

Generally yes, with shorter amortisations and terms that do not match the amortisation.

How long does commercial financing take?

Considerably longer than residential. Environmental assessment alone can add months.

One application. 7 lenders. Apply Now