3852 Finch Ave E #209, Scarborough, ON M1T 3T9, Canada
Brokerage #13763
- Home
- Our Story
- Real Results
- How It Works
- Resources
- Join Our Team
- Calculators
- Mortgage Solutions
Brokerage #13763
DSCR (Debt Service Coverage Ratio) — measures whether a commercial property's net operating income (NOI) is sufficient to cover its annual debt payments. The formula is DSCR = Net Operating Income ÷ Annual Debt Service. Most Ontario commercial lenders require a minimum DSCR of 1.20x to 1.40x, depending on property type and lender tier. lendsimpl arranges commercial mortgages across Ontario for properties at or below standard DSCR thresholds through alternative lender options. FSRA Licensed Brokerage #13763.
Formula, property-type benchmarks, and how to qualify if your DSCR is too low.
5.0 on Google (19 reviews)FSRA Brokerage #13763Ontario-wideTakes about 30 seconds · Free · No obligation
From your property numbers to a lender match — every step confirmed in writing.
Gross rent, vacancy, operating expenses, and your proposed loan amount — no personal income documents needed.
We work out your Net Operating Income and Annual Debt Service, then identify which lender tiers your ratio qualifies for.
Matched to the bank, B-lender, or private lender suited to your DSCR and property type — terms confirmed in writing.
Ready to check your DSCR?
Tell us your property numbers — we'll tell you what's possible.
1.20x–1.40x
Minimum DSCR — highest for office & retail
1.15x–1.25x
Minimum DSCR across most property types
1.05x–1.15x
Most flexible — equity can offset a lower DSCR
lendsimpl is an FSRA-licensed mortgage brokerage (Brokerage #13763) arranging commercial mortgages across Ontario. DSCR requirements vary by lender, property type, and deal structure. All applicable fees are disclosed in writing before you proceed — as required by FSRA regulations.
A stronger DSCR generally unlocks lower rates and higher leverage from bank and institutional lenders. Any fees that apply to your file are disclosed in writing before you commit to anything.
Want to know where your property lands?
We'll run the numbers with you.
DSCR = Net Operating Income ÷ Annual Debt Service — the core formula every Ontario commercial lender uses
CMHC MLI Select allows a minimum DSCR of 1.10x for qualifying multi-family properties at the 100-point tier
A property can pass LTV requirements but still fail DSCR — lenders underwrite on both simultaneously
lendsimpl works with 50+ lenders across all DSCR profiles, including below-1.0x situations through private commercial lenders
Have a property type not listed here?
Call us — DSCR requirements vary more than you'd think.
5.0 on Google
19 reviews
1.20x–1.40x
Typical bank/institutional DSCR minimum
1.10x
CMHC MLI Select minimum DSCR (100-pt tier)
50+
Lenders across all DSCR profiles
We calculate your DSCR from your actual rent roll and expenses, show you exactly where you land against bank, B-lender, and private thresholds, and identify the fastest path to qualifying — including CMHC MLI Select and amortization strategies that improve your ratio without changing your loan amount.
See it for yourself.
Licensed brokers, straight answers.
Add up all rental income the property generates annually at full occupancy (Gross Potential Rent).
Apply a vacancy rate — 5% for multi-family, 10–15% for office/retail. Effective Gross Income = Gross Rent × (1 − Vacancy Rate).
Subtract property tax, insurance, utilities, maintenance, management fees (4–6% of revenue), and reserve for replacement to get Net Operating Income (NOI).
Total annual mortgage payments (principal + interest) at the proposed loan amount, rate, and amortization — using the lender's benchmark qualifying rate.
DSCR = Net Operating Income ÷ Annual Debt Service. Above 1.25x is strong; below 1.0x means the property can't service the proposed debt from income alone.
Ready to calculate your DSCR?
Share your numbers, or ask a question first.
Five practical levers — plus one financing structure — that can move your ratio before you submit.
Below-market rents are the most common DSCR killer. Bringing rents to current market rates on lease renewals can materially lift NOI — even a 5% increase on a 20-unit building at $1,800/month adds $21,600 to annual NOI.
Improving occupancy from 90% to 95% on a $200,000 gross rent property adds $10,000 to effective gross income. Strong property management and proactive leasing reduce vacancy drag.
Renegotiate management fees, appeal property tax assessments, and get competitive insurance quotes. Each dollar saved goes directly to NOI.
Extending amortization from 25 to 40 years reduces annual debt service significantly — on a $1.5M loan at 6.5%, the difference can move DSCR from roughly 1.10x to 1.30x.
For 5+ unit residential properties, MLI Select offers 50-year amortization and a minimum 1.10x DSCR at the 100-point tier — the most powerful DSCR lever for Ontario multi-family investors.
Learn more →Parking revenue, laundry machines, storage lockers, and ancillary services all add to NOI. On a 20-unit property, $100/month in parking revenue per unit adds $24,000/year.
Not sure which lever fits your property?
Tell us the situation — we'll tell you what's possible.
B-lenders and private commercial lenders accept lower DSCR than banks — private lenders are the most flexible, sometimes accepting 1.05x or below in equity-rich situations.
Pledging additional real estate or providing a strong personal guaranty can offset a DSCR shortfall for institutional lenders.
For qualifying 5+ unit properties, MLI Select's 50-year amortization significantly reduces annual debt service — often resolving a marginal DSCR issue without changing the loan amount.
A 12-month forward NOI projection backed by signed leases can satisfy some lenders if near-term rent increases or lease-ups are underway.
A lower loan amount means lower annual debt service and a higher DSCR — increasing the down payment is the most direct lever when other options aren't available.
DSCR too low right now?
No obligation — let's talk through the options.
5.0/5 average rating
Join Ontario businesses we've funded.
Licensed Ontario brokers, real results.
Rather just talk it through?
A licensed broker is one call away.
Straight answers on the formula, lender benchmarks, and how to qualify if your ratio is too low.
Have a question we didn’t answer?
Our licensed broker team is happy to help.
DSCR stands for Debt Service Coverage Ratio. In Ontario commercial mortgage lending, it is the ratio of a property's annual Net Operating Income (NOI) to its annual debt service (total mortgage payments including principal and interest). The formula is: DSCR = Net Operating Income ÷ Annual Debt Service. A DSCR of 1.0x means the property generates exactly enough income to cover its mortgage. A DSCR of 1.25x means it generates 25% more income than needed. Lenders require a DSCR above 1.0x to confirm the property can service its debt.
Still have questions?
No obligation — just answers.
From downtown Toronto to secondary markets across the province — lendsimpl arranges DSCR-based commercial mortgages wherever your property is located.
Have a property in one of these areas?
Let's get your DSCR calculated.
lendsimpl arranges commercial mortgages across Ontario for every DSCR profile — bank, B-lender, and private. We calculate your ratio, show you where you qualify, and confirm the terms in writing before you commit to anything. FSRA Brokerage #13763.
No forms, no waiting on a callback — pick a slot for a 15-minute call with a licensed broker directly below.
Hello — I look forward to connecting with you. Tell us a bit about your situation and we'll walk through your options.