Ontario Mortgage Guide
How can I finance a commercial property in Ontario?
Commercial property financing is shaped by the property, how it will be used, the borrower, and the financial plan. The review can be more detailed than a standard residential mortgage application.
Talk through your optionsThe short answer
What should I know?
Commercial real estate financing may be available for eligible purchases, refinances, or other property needs. Lenders can review the property type and condition, borrower and business financials, occupancy or leases, income, equity, and repayment plan. Terms and documentation vary by lender and transaction.
Mortgage availability, rates, qualification, and lender requirements depend on your application and may change. This guide is general information, not a mortgage approval or financial, legal, or tax advice.
Before you decide
What should I consider?
01
Property use and type
Office, retail, industrial, mixed-use, and other property types can be assessed differently. Intended use and occupancy are important to explain.
02
Financial statements and cash flow
Lenders may ask for business or personal financial statements, leases, rent rolls, forecasts, and other records relevant to repayment.
03
Equity and transaction costs
Plan for the required equity contribution and costs such as legal, appraisal, environmental, and due diligence expenses where applicable.
04
The asset and the borrower
Lenders may assess property value, condition, income, borrower experience, credit, and the overall business plan.
A clear process
How can I get started?
- 01
Describe the transaction
Clarify the property, its use, purchase or refinance purpose, ownership structure, and timeline.
- 02
Prepare the financial picture
Collect business and personal records, leases, operating statements, and property documents relevant to the transaction.
- 03
Explore lender requirements
Compare applicable terms, costs, conditions, and due diligence before proceeding.
Common questions
What else should I know?
Is commercial financing different from a residential mortgage?
It can be. Underwriting, documentation, terms, and lender assessment may depend more directly on the property, income, business, and transaction.
Can a small business owner apply for commercial financing?
A business owner may explore financing, subject to lender criteria and the details of the borrower, property, and proposed use.
What documents should I prepare?
The lender may request financial statements, tax information, leases, property details, a business plan, or other documents. Requirements vary, so confirm the list for your transaction.
Personal guidance
Want to talk through your situation?
Steve Beecroft, Mortgage Agent Level 2, can help you understand the questions to ask and the options to explore. A conversation does not guarantee approval or a particular rate.
Contact Steve