Financing for Business & Investment Property.
Commercial mortgages fund the buildings that residential financing can't — apartment blocks, mixed-use storefronts, industrial units and the premises a business operates from. The rules, documents and approvals work differently from a home purchase. Here's how commercial lending is assessed, what lenders weigh, and where to start in Vaughan, York Region and the GTA.
What counts as commercial
If a property is income-producing at scale or used to run a business, it usually falls outside residential lending.
Multi-residential (5+ units)
Apartment buildings and larger rental blocks. Once a property has five or more units, most lenders treat it as commercial rather than residential.
Mixed-use
Buildings that combine commercial and residential space — a retail or office unit at street level with apartments above, for example.
Retail, industrial & office
Plazas, storefronts, warehouses, industrial condos and office space held as investments or leased to tenants.
Owner-occupied business premises
The building a business owns and operates from — a shop, clinic, restaurant, workshop or professional office.
How commercial underwriting differs
Commercial deals are assessed on the property and the business behind it — not just a personal income and credit check.
Lenders focus on whether the property's net operating income comfortably covers the mortgage payments. A debt-service coverage ratio compares income to debt payments, and the required cushion varies by lender and property type.
Commercial financing generally requires more equity than a typical residential purchase. Loan-to-value limits depend on the asset class, tenancy and lender.
There's far less of a fixed "rulebook." Each deal is reviewed on its own merits, and terms, rates and conditions are negotiated rather than posted.
Commercial appraisals are more detailed, and some properties — particularly industrial or older sites — may need environmental review before a lender will commit.
Commercial terms and amortizations can be shorter than residential, and renewal or refinancing planning matters more as a result.
What lenders look at
Is the building generating stable, reliable income? Lenders study the rent roll, lease terms, tenant quality, vacancy and operating costs to judge whether the property can support the mortgage on its own.
Your experience, financial strength, net worth and track record all factor in — as does the health of the business if the premises are owner-occupied. Lenders want confidence that the sponsor behind the deal can carry it.
Why this property, and what happens at the end of the term? A clear plan — hold and lease, reposition, expand a business, or refinance later — and a realistic exit give lenders a reason to say yes.
No two commercial lenders have the same appetite. Matching your project to the right lender for that asset class and story is often what makes or breaks the deal — and it's where a broker earns their keep.
Documents & timelines
Commercial deals ask for more paperwork and take longer than a residential purchase — planning ahead pays off.
Income and expense statements, a current rent roll and operating history that show how the property actually performs.
Signed leases, tenant details and lease-expiry dates so the lender can gauge income stability and future turnover.
For owner-occupied premises: business financial statements, tax filings, corporate records and details on how the business uses the space.
Between detailed appraisals, potential environmental reports and case-by-case review, commercial deals routinely take longer than residential ones — start the conversation early.
Who it's for
Commercial financing suits investors scaling into multi-residential or mixed-use property, business owners ready to buy the premises they operate from instead of renting, and developers funding a project or repositioning a building. If your goals have outgrown residential lending, this is where the right structure and lender fit start to matter most.
Related pages
Mortgage Solutions
See how this fits with Paul's mortgage solutions.
Learning Centre
Plain-language guides on buying, costs, credit and more.
Investment Properties
Financing rental and income properties, and how lenders view them.
Refinancing
Access equity or reset your mortgage to fund your next move.
HELOCs
Flexible, revolving access to your property's equity.
Financing commercial or mixed-use property?
Let's talk through your project and the right lender fit.