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Helping You Secure Your Financial Future —
Mortgages, Investments & Insurance Tailored to You
"Where TRUST Grows, Business Begins – RP"
COMMERCIAL MORTGAGE LOANS | FINANCING FOR SMALL BUSINESSES & COMMERCIAL PROPERTIES
Commercial mortgages are specialized real estate loans designed for the purchase, refinancing, or development of commercial properties. These types of mortgages are essential for business owners, investors, and developers looking to acquire income-generating or operational real estate.
✅ Why Work With A Mortgage Broker?
Commercial financing is more complex than residential lending. A licensed Canadian mortgage advisor can help:
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Navigate lender-specific requirements
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Compare interest rates and terms from multiple institutions
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Structure the deal for maximum cash flow and return on investment
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Identify opportunities such as interest-only terms, blended rates, or refinancing strategies
💰 Loan Amounts:
✅ Commercial Loans:
Designed for larger-scale real estate or development projects, commercial mortgages typically exceed $1 million. These loans are ideal for acquiring or refinancing high-value properties such as multi-unit residential buildings, office towers, shopping centers, or industrial warehouses. The loan size depends heavily on the property's appraised value, revenue potential, and the borrower’s overall financial strength and net worth.
✅ Small Business Loans:
Tailored for entrepreneurs and owner-operators, small business loans are often under $1 million and are used to purchase a small business, buy equipment, fund working capital, or acquire a smaller commercial unit. Approval criteria focus on business cash flow, credit history, and the borrower's personal financial profile.
✅ Key Features of Commercial Mortgages/Business Loans:
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Interest Rates: Usually higher than residential mortgages due to greater risk and complexity. Rates may be fixed or variable, based on the lender’s criteria and market conditions.
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Loan-to-Value (LTV) Ratio:
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Most lenders offer between 65% and 85% LTV based on the appraised value of the property.
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A lower LTV requires a larger down payment, reducing the lender’s risk.
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Every application is evaluated on a case-by-case basis, especially for unique or specialized commercial projects.
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✅ Who Should Consider a Commercial Mortgage?
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Entrepreneurs and small business owners seeking to own their storefront or office.
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Real estate investors acquiring rental income properties.
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Developers financing construction or renovation projects.
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Corporations seeking long-term capital investment opportunities.
💡 Lenders will typically assess the cash flow, profitability, business plan, and goodwill value of the business, not just the assets. Collateral or a personal guarantee may also be required, especially if there's no real estate involved.
COMMON TYPES OF BUSINESSES THAT CAN BE PURCHASED WITH BUSINESS OR COMMERCIAL FINANCING:
✅ Franchises – Well-known fast food chains, retail stores, or service brands
✅ Restaurants and Cafés – Existing dine-in, takeout, or food truck businesses
✅ Retail Stores – Clothing boutiques, electronics shops, convenience stores
✅ Professional Practices – Dental clinics, medical practices, accounting or legal firms
✅ Salons and Spas – Hair salons, nail bars, massage therapy, and beauty clinics
✅ Daycare Centers – Licensed childcare businesses with proven cash flow
✅ Auto Repair Shops – Mechanic garages, detailing shops, or car wash services
✅ Cleaning and Janitorial Companies – Residential or commercial cleaning services
✅ Construction or Trade Companies – Plumbing, electrical, HVAC, or general contracting businesses
✅ Fitness Centers or Gyms – Boutique studios or traditional gym businesses
✅ eCommerce Businesses – Online retail stores with verifiable revenue and customer base
✅ Logistics or Delivery Companies – Courier services, freight, and local delivery operations
✅ Manufacturing Businesses – Small-scale production facilities or custom fabrication shops
✅ Pet Care Businesses – Grooming, boarding, dog daycares, or pet supply stores
✅ Laundromats and Dry Cleaners – Established businesses with consistent cash flow
✅ Print Shops or Copy Centers – Commercial printing or digital services
✅ Tech or IT Services – Managed service providers, web development firms, or software startups (with assets or contracts in place)
✅ Educational or Tutoring Services – Private learning centers or test-prep schools
COMMON TYPES OF COMMERCIAL & BUSINESS PROPERTIES ELIGIBLE FOR COMMERCIAL MORTGAGE LOANS:
✅ Office Buildings – Single or multi-tenant office spaces for corporate or professional use
✅ Retail Properties – Strip malls, standalone shops, plazas, or shopping centres
✅ Industrial Properties – Warehouses, manufacturing facilities, and distribution centres
✅ Multi-Family Residential Buildings – Typically 5 units or more (e.g., apartment complexes)
✅ Mixed-Use Properties – Buildings with a combination of residential and commercial spaces
✅ Hotels and Motels – Hospitality properties that generate business income
✅ Healthcare Facilities – Medical clinics, dental offices, long-term care homes
✅ Restaurants and Cafés – Standalone or leased commercial food service businesses
✅ Daycare Centres and Schools – Educational or childcare facilities
✅ Self-Storage Facilities – Storage businesses with individual rental units
✅ Gas Stations and Auto Repair Shops – Properties with service stations or garages
✅ Agricultural/Commercial Farms – Large-scale agricultural businesses (subject to lender criteria)
✅ Car Dealerships and Showrooms – Auto retail locations with indoor or outdoor sales areas
✅ Special-Use Properties – Churches, community centres, recreational facilities (case-by-case basis)
CMHC-INSURED COMMERCIAL MORTGAGE: AFFORDABLE FINANCING FOR MULTI-UNIT RENTAL PROPERTIES
The CMHC Insured Commercial Mortgage program empowers approved Canadian lenders to offer flexible and affordable financing solutions for investors and developers of standard multi-unit residential rental properties. Whether you're looking to build, purchase, or refinance, this program provides significant advantages, including:
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Competitive interest rates
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Lower down payment requirements
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Extended amortization periods (up to 40 years for eligible projects)
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Reduced lender risk, making approval more accessible
This government-backed insurance enables more Canadians to invest in rental housing developments, supporting long-term affordability and sustainable housing supply. Ideal for real estate investors, developers, and property managers focused on expanding rental housing in Canada.