Commercial mortgages don't care about your salary. They care about the building's cash flow. We'll show you the math (DSCR), the rates by asset class, and the lenders that fund $500K offices all the way to $100M apartment portfolios — including the CMHC MLI Select trick that gets multi-family borrowers to 95% LTV.
Banks ignore your salary. They underwrite the property's cash flow. If the rent roll covers the mortgage with 20% to spare (DSCR ≥ 1.20), you're approved — even with zero personal income.
Forget 30-year fixed. Commercial deals typically amortize over 20–25 years (multi-family can hit 30) with 5-year terms. You'll renew or refinance several times over the life of the property.
Even when the borrower is a corporation, banks demand recourse to the principal. Non-recourse exists (CMHC at 65%+ LTV, large institutional deals), but expect to personally guarantee for the first 5–10 years.
Debt Service Coverage Ratio = NOI ÷ Annual Mortgage Payment. 1.20+ opens conventional bank financing. 1.10+ opens CMHC MLI Select. Below 1.0? You're funding the property out of pocket every month.
For multi-family deals (5+ units), CMHC's MLI Select program rewards projects that score on affordability, energy efficiency, or accessibility. Hit enough points and you unlock the lowest rates in Canada — with up to 50-year amortization and 95% loan-to-cost on new construction.
Cap rate = NOI ÷ price. Lower cap rate = more expensive (Toronto multi-family). Higher cap rate = better yield (Edmonton office).
There are 60+ active commercial lenders in Canada. Here are the 9 every broker calls first.
Multi-family CMHC champion
Multi-family · MLI Select
Multi-family · commercial
Mid-market all classes
Established borrowers, lowest rate
Investment property + owner-occ
All classes, recourse-friendly
QC/ON · co-op friendly
Bridge · transitional · complex
T12 rent roll, T12 income statement, Phase I environmental, recent appraisal, all leases, corporate financial statements.
Lender quotes rate, LTV, DSCR floor, amortization, recourse vs. non-recourse. You sign with a refundable deposit ($5–25K).
Third-party appraisal (lender-ordered), Phase II environmental if flagged, building condition assessment, title review, KYC on principals.
Final approval issued. Lender holds the rate. If CMHC-insured: add 4–6 weeks for CMHC approval. You sign within 30 days.
Lawyers register the charge. Funds advance to your account or directly to the vendor. Origination fee due (typically 0.50–1.00% of loan).