Commercial Real Estate Mortgage Financing in Ontario
cornellmortgages.ca arranges institutional-grade commercial real estate mortgage financing across Ontario's major markets. From 5-unit apartment buildings to multi-site industrial portfolios, from bridge loans on value-add assets to CMHC MLI Select insured multi-family — every deal is underwritten with the rigour of someone who has sat on the investment side of the table.
​
Commercial real estate mortgage financing is not a product you can genericize. A 120-unit purpose-built rental in Hamilton carries very different underwriting requirements than a 30,000 sq. ft. flex-industrial in Scarborough or a 12-room motel in Niagara Falls. The lender pool, the loan-to-value thresholds, the amortization options, and the debt service coverage requirements all vary by asset type, market, and deal specifics. cornellmortgages.ca brings the institutional background to navigate these distinctions correctly.
How Commercial Mortgage Underwriting Works
Unlike residential mortgages, commercial lenders underwrite to the property's income — specifically, the Net Operating Income (NOI). NOI is calculated as:
Effective Gross Income (total rents minus vacancy allowance) minus
operating expenses (taxes, insurance, management, maintenance, utilities).
The resulting NOI is then compared to the proposed debt service to derive the Debt Service Coverage Ratio (DSCR).
​
Most conventional commercial lenders require a minimum DSCR of 1.20x — meaning NOI must exceed annual debt service by at least 20%. CMHC-insured products for multi-family may allow different thresholds. Cap rates are used to assess the reasonableness of the purchase price relative to market: a property trading at a 4.5% cap in a market where comparables are at 5.5% will be scrutinized by a lender even if the DSCR pencils.
​
Loan-to-Value (LTV) limits for commercial assets are typically: % for multi-family conventional, 85%+ for CMHC-insured multi-family, 65-70% for retail and office, 60-70% for industrial, 50-65% for hospitality, and lower for development and land. These are general ranges — deal-specific terms depend on asset quality, tenancy, market, and lender appetite.
Commercial Mortgage Amortization —
Understanding Your Options
Commercial mortgages in Canada offer amortization periods well beyond the 25-year residential standard:
​
-
Conventional commercial: typically 20-25 years amortization, 5-10 year terms
​
-
CMHC-insured multi-family (MLI Select): up to 50-year amortization, lowering annual debt service significantly
​
-
Construction/development loans: interest-only during construction, converting to term on completion
​
-
Bridge financing: 12-36 months, interest-only, no amortization — designed for transitional periods
​
A 10-year rate hold on a conventional commercial mortgage provides stability — but the rate will typically be higher than a 5-year term. The right term structure depends on your business plan for the asset: acquisition and hold, value-add and refinance, or acquisition and sell.
Commercial Mortgage Property Types — Ontario
Multi-family is the most lender-accessible commercial asset class in Canada, particularly when CMHC-insured. Purpose-built rental apartments (5+ units), student housing, seniors housing, and affordable rental all qualify for commercial mortgage financing. CMHC's MLI Select program provides the most favourable terms available in the Canadian market: amortizations up to 50 years, LTVs up to 85%, and reduced insurance premiums for projects scoring on energy efficiency, accessibility, and affordability metrics.
​
cornellmortgages.ca structures multi-family applications for markets across Ontario including Toronto, Hamilton, Guelph, London, Ottawa, Kitchener-Waterloo, Windsor, and all regions in between.
Industrial is one of Canada's strongest performing commercial asset classes over the past decade. Lender appetite is strong for well-tenanted industrial — but specialized assets (data centres, climate-controlled, cold storage, heavy manufacturing) require lenders with the underwriting appetite for non-standard use. Cornell's first-hand experience acquiring these asset types means cornellmortgages.ca knows which lenders will engage and how to structure the deal package.
​
Key industrial markets served: Toronto/Scarborough, Brampton, Mississauga, Hamilton, Burlington, Cambridge, Guelph, London.
Retail mortgage underwriting requires careful attention to tenancy mix, Weighted Average Lease Term (WALT), anchor tenant quality, and lease renewal risk. A strip plaza anchored by a national grocery tenant is underwritten very differently than one anchored by local service tenants — and the lender pool is different. cornellmortgages.ca identifies the right lender for the specific asset, not just the best-advertised rate.
​
Key retail markets: Hamilton, Niagara–St. Catharines, Brantford, London, Windsor, Ottawa.
Office asset underwriting has become more complex in a post-pandemic environment. Lenders apply higher vacancy assumptions, shorter WALT discounts, and more conservative LTV thresholds for multi-tenant office — particularly in markets with elevated vacancy rates. Single-tenant office and medical office with long-term leases remain attractive to lenders. cornellmortgages.ca underwrites to the real vacancy picture, not the optimistic scenario, and presents deals with credibility.
​
Key office markets: Toronto, Oakville, Guelph, Ottawa, Kitchener-Waterloo.
Development financing involves multiple stages:
​
-
land acquisition (lowest LTV, highest risk),
​
-
rezoning and approval (bridge or equity financing),
​
-
construction draws (progress-based advances against cost-to-complete), and
​
-
take-out (conversion to conventional or CMHC-insured term mortgage on completion).
Each stage requires different lender engagement and deal structure. Cornell's previous investment experience concerning industrial real estate development provides direct insight into how these files are structured and underwritten.
​
Active development markets: Hamilton, Guelph, Niagara, Brantford, Waterloo Region.
Hospitality is one of the most lender-restricted commercial asset classes. LTVs are typically 50-60%, and lenders require 2-3 years of stabilized operating history and detailed analysis of Revenue Per Available Room (RevPAR), Average Daily Rate (ADR), and occupancy trends.
Franchise-affiliated properties have access to better lender terms than independent operators. cornellmortgages.ca works with lenders who actively finance Ontario hospitality assets.
​
Key hospitality markets: Niagara Falls, Ottawa, London, Windsor, Toronto.
Bridge loans are short-term (typically 12-36 months), interest-only financing instruments used when a property does not yet qualify for conventional or CMHC-insured financing. Common scenarios: value-add acquisition where current NOI is insufficient to support conventional LTV; properties transitioning from one use to another; assets in lease-up; and purchases requiring a quick close that a conventional lender cannot match.
cornellmortgages.ca structures bridge deals with a clear exit strategy — the next financing event — built into the underwriting.​
​
Key office markets: Toronto, Oakville, Guelph, Ottawa, Kitchener-Waterloo, Burlington, Hamilton.
Mixed-use assets — retail plus residential, office plus residential, or any combination — require a broker who understands both the commercial and residential components of valuation. Most commercial lenders will discount or exclude the residential income; most residential lenders cannot handle the commercial component.
cornellmortgages.ca structures mixed-use deals for the lender(s) best suited to the specific configuration.
Key office markets: Toronto, Oakville, Guelph, Ottawa, Kitchener-Waterloo, Burlington, Hamilton.
Service Areas —
Commercial Mortgage Financing Across Ontario
cornellmortgages.ca arranges commercial mortgage financing in the following Ontario markets:
​
Toronto and Scarborough (GTA East) · Hamilton (Ancaster, Dundas, Stoney Creek, Flamborough, Glanbrook, Waterdown, Binbrook) · Niagara–St. Catharines (Niagara Falls, Welland, Fort Erie, Thorold, Grimsby, Lincoln, Niagara-on-the-Lake) · Guelph · Brantford · Burlington · Oakville · Kitchener-Waterloo and Cambridge (Waterloo Region) · Ottawa · London · St. Thomas · Windsor.
​
Offices in Toronto/Scarborough and Oakville. Virtual consultations available province-wide.
Available 7 days a week during regular business hours. Extended hours available upon appointment.
Start Your Commercial Mortgage Application
Bring your property details: current rent roll, recent financials, purchase agreement (if applicable), and your financing objectives. cornellmortgages.ca will assess deal viability, model the DSCR at realistic assumptions, identify optimal lender placement, and provide a realistic rate and structure expectation — before you spend money on appraisals and legal fees.
​
Call +1-647-923-7499 or submit your inquiry online. Do not forget to send your documents to cornell@ncompassfinanical.ca.
Available 7 days a week during regular business hours. Extended hours available upon appointment.