Commercial Mortgage Rates in Ontario

Multifamily mortgages are larger, longer-term loans funded with longer-term capital, so the five-year Government of Canada bond yield is a common benchmark for them. Prime tends to drive shorter-term residential products. That is why the two can move differently for a while.

It depends on your file. The premium is usually added to the loan. In return CMHC-insured financing can offer higher loan to value and longer amortization than conventional. MLI Select also reduces the premium by 10%, 20% or 30% at 50, 70 or 100 points. We compare the total cost for your property.

DSCR, your net operating income divided by annual debt service, is one of the main things lenders look at. CMHC sets minimums by property type, units, loan purpose and term. Conventional lenders set their own. Try our DSCR calculator or read how lenders use DSCR in Ontario.

MLI Standard is for stabilized rental properties with 5 or more units, up to 85% loan to value, with amortization up to 40 years on existing buildings. MLI Select starts at 50 points and rewards affordability, energy efficiency and accessibility. At 50 points the limit is 85% on existing buildings and 95% on new construction. From 70 points existing buildings can reach 95%. Amortization can reach 40, 45 or 50 years at 50, 70 or 100 points. Read more in our guide to CMHC MLI Select in Ontario.

Yes, this is a common path for value-add buildings. You buy with a short-term private loan, stabilize the property, then refinance into CMHC or conventional financing once it qualifies. Go in with a clear refinance plan. Broker and lender fees apply to private loans and are disclosed in writing before you commit.

It depends on the lender, the property and how complete your application is. CMHC-insured files add a CMHC review step. We tell you what to expect when we review your file.

Shorter and longer terms are priced differently. A longer term gives payment certainty and removes renewal risk. A shorter term can suit a plan to refinance or sell. The right choice depends on your business plan.

Rates are not posted. Pricing depends on your property, DSCR, loan to value and the lender. See the indicative starting rates in the cards above, and we compare options across 50+ lenders for your file.

Usually a rent roll with current leases, two to three years of property financials and tax returns, a personal financial statement, an environmental report, your investment experience and recent capital expenditure records. CMHC files need more on stabilization, occupancy history and property condition. Requirements vary by lender.

Yes. We compare your lender's renewal offer with options from other lenders and explain any costs of switching before you decide. We are licensed and regulated by FSRA (Brokerage #13763), required to disclose fully and act in your interest.