How to Qualify for a Commercial Mortgage in Ontario — DSCR, LTV, Credit & Lender Guide 2026

Most important underwriting metric. DSCR = Net Operating Income ÷ Annual Debt Service. Banks require 1.25–1.40x. B-lenders accept 1.15–1.25x. Private lenders may accept 1.10x or lower if equity is strong.

Banks: maximum 65–70% LTV. B-lenders: up to 75% LTV. Private lenders: up to 75–80% LTV. CMHC multi-unit: up to 85–95% LTV with MLI Select insurance.

Banks: 720+. B-lenders: 650–719. Private lenders: no minimum — equity and DSCR are primary. Self-employed borrowers with strong property cash flow can qualify at B-lenders with 650+.

T1 generals, NOI statements, current leases, tenant rent rolls. For multi-unit properties: Schedule E income. For commercial tenants: executed lease agreements with terms, rent amounts, and renewal options.

Banks and B-lenders require 2 years of personal NOAs (Notice of Assessment) or T4s. Self-employed: 2 years of T1 generals + NOAs. Private lenders typically do not require personal income documentation.

Minimum 25% down on most commercial properties for bank financing. B-lenders may require 30–35%. Private lenders: 25–35% depending on property type. CMHC multi-unit: 5–15% down with insurance.

Banks prefer Class A and B properties with stable tenants and modern systems. Special-use properties (gas stations, car washes, restaurants) are typically private or B-lender territory. Environmental Phase 1 report often required.

Banks want 85%+ occupancy with multi-year leases in place. B-lenders accept 70–85%. Private lenders will fund transitional assets under 70% occupancy — higher rate applies.

How do I qualify for a commercial mortgage in Ontario?

To qualify for a commercial mortgage in Ontario, lenders evaluate: (1) DSCR — the property's net operating income vs. annual debt service (minimum 1.10–1.40x depending on lender). (2) LTV — loan-to-value ratio (65–80% depending on lender tier). (3) Credit score — 720+ for banks, 650+ for B-lenders, no minimum for private lenders. (4) Property income documentation — current leases, rent rolls, 2-year NOI history. (5) Personal income — 2 years NOA/T4 for bank and B-lender applications. Private lenders focus primarily on DSCR and LTV, not personal income or credit. lendsimpl matches your commercial deal to the right Ontario lender tier — FSRA Brokerage #13763.

What DSCR do I need to qualify for a commercial mortgage in Ontario?

DSCR requirements for commercial mortgages in Ontario vary by lender type: Major banks (TD, RBC, BMO commercial): 1.25–1.40x minimum. B-lenders and credit unions: 1.15–1.25x. Private lenders (MICs, individual investors): 1.10x or below if LTV is strong (under 65%). CMHC-insured multi-unit: 1.10–1.20x. The DSCR formula is: Net Operating Income (NOI) ÷ Annual Debt Service (P&I payments). If your DSCR is below 1.20x, lendsimpl can identify B-lender or private options and strategies to improve your ratio.

How much down payment do I need for a commercial mortgage in Ontario?

Commercial mortgage down payment requirements in Ontario: Conventional bank: 25–35% down (65–75% LTV). B-lender / alt-commercial: 25–30% down (70–75% LTV). Private lender: 20–25% down (75–80% LTV) for strong deals. CMHC-insured multi-unit (5+ units): 5–15% down — the CMHC MLI Select program allows up to 95% LTV for qualifying affordable/energy-efficient properties. Note: commercial down payments are generally non-insurable except for multi-unit residential properties under NHA.

What credit score do I need for a commercial mortgage in Ontario?

Credit score requirements for commercial mortgages in Ontario: Major banks: 720+ personal credit score. Credit unions and B-lenders: 650–719. Private lenders (MICs): No minimum — approval is based on property cash flow, LTV, and deal structure. For self-employed borrowers or those with bruised personal credit, B-lender and private commercial options are available. A strong DSCR (1.30x+) and low LTV (under 65%) can offset credit score weakness at B-lenders.

Can I get a commercial mortgage in Ontario if I'm self-employed?

Yes. Self-employed borrowers can qualify for commercial mortgages in Ontario: Banks require 2 years of T1 generals showing business income, but this is feasible for most incorporated business owners. B-lenders use flex income documentation — business bank statements, NOAs, or accountant letters are often sufficient. Private lenders do not require income documentation — they lend based on the property's DSCR and LTV alone. lendsimpl specialises in commercial mortgage applications for self-employed Ontario borrowers.

How long does it take to get approved for a commercial mortgage in Ontario?

Commercial mortgage approval timelines in Ontario: Bank / institutional lender: 3–6 weeks (appraisal, environmental report, full underwriting). B-lender / alt-commercial: 2–4 weeks. Private lender: 5–10 business days (streamlined underwriting, equity-focus). CMHC-insured multi-unit: 6–12 weeks (CMHC review is the long pole). lendsimpl prepares your complete submission package upfront to minimise lender back-and-forth and accelerate approval timelines.

How does lendsimpl compare to a bank for qualifying for a commercial mortgage in Ontario?

Banks process commercial mortgage applications internally through a credit committee — one lender, one set of criteria, 3–6 weeks. If declined, you start over. lendsimpl is a licensed mortgage brokerage (FSRA #13763) that submits your deal to multiple commercial lenders simultaneously: banks, credit unions, B-lenders, and private MICs. One application, 50+ lenders reviewed, optimal lender matched to your DSCR, LTV, and property type. lendsimpl arranges bank and B-lender commercial deals.