Commercial Mortgage

Commercial mortgages are specialized loans used to finance income-producing properties such as office buildings, retail plazas, industrial spaces, and multi-unit residential complexes (typically 5+ units). Unlike residential mortgages, commercial lending in Canada involves stricter qualification criteria, including a detailed review of the property's income, operating expenses, and the borrower's financial strength. Key metrics like the Debt Service Coverage Ratio (DSCR) are used to assess the property's ability to support the loan. Down payments typically range from 25% to 35%, and interest rates can vary depending on the asset type, location, and lender—whether institutional or private.