Private Commercial Mortgage in Ontario: Equity-Based Financing for Business Properties

A private commercial mortgage in Ontario is a short-term business property loan funded by a private lender, typically a Mortgage Investment Corporation (MIC), syndicated investors, or a high-net-worth individual, rather than a chartered bank or credit union. Underwritten primarily on property equity (LTV) and cash flow (DSCR), with no requirement for personal income documentation or minimum credit score. Private commercial rates vary by lender, property, loan to value and term, and are confirmed at application. Private lenders lend mainly against equity. Typical terms are 6 to 24 months, used as bridge financing until the borrower refinances to a bank or B-lender.

All fees (lender fees, legal costs) are disclosed transparently in writing before you proceed, as required by FSRA, lendsimpl holds FSRA Brokerage Licence #13763.

Private commercial rates depend on the property type, loan to value, loan position (first or second), term and the strength of your exit plan. Pricing is confirmed at application, and any lender or broker fee that applies to your file is disclosed in writing before you commit.

Most Ontario private commercial lenders approve up to 65 to 75% LTV depending on the property type and location: Standard commercial (office, retail, industrial) in Toronto/GTA: up to 70 to 75% LTV. Secondary markets (Ottawa, Hamilton, Kitchener, Barrie): up to 65 to 70% LTV. Special-use (gas station, restaurant, car wash): up to 60 to 65% LTV. Land or development: up to 50 to 60% LTV (land value only).

No, private commercial lenders in Ontario do not require personal income documentation (T4s, NOAs, T1 generals). Approval is based on LTV ratio, property cash flow / DSCR, and property type and location. This makes private commercial mortgages particularly useful for self-employed owners, incorporated borrowers, foreign investors, and borrowers with complex income structures.

Private lenders focus mainly on the equity in the property, the property itself and your exit plan, and many are flexible on DSCR. Maximum loan to value is generally up to 75%. Pricing is confirmed at application.

Private commercial mortgages in Ontario typically close in 5 to 10 business days from application to funding, vs. 3 to 6 weeks for a bank commercial mortgage, because there's no institutional credit committee approval, no personal income verification, and a streamlined appraisal and legal process.