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Commercial Mortgage

Commercial Mortgage

Our commercial loan specialists handle all the details from start to finish

All Roads Lead to Better Commercial Mortgage Financing with UsExplore Commercial Mortgage Options for Your Property

  • At First Choice Capital, we provide tailored commercial mortgage solutions for business owners, investors, and developers across Canada. Whether you’re looking to purchase a new property, refinance an existing one, or fund a construction project, our team connects you with the right lenders and financing options to achieve your goals.
  • We negotiate & secure our clients competitive interest rates for commercial mortgage financing between $250k and $300 million. Our passionate Commercial Loan Specialists are former bankers with deep experience in Canada’s major chartered banks, credit unions, and alternative lending institutions. This insider expertise means we understand exactly how lenders evaluate deals — and how to position your application for success and maximum loan to value. With our Commercial Loan Specialists based in key urban markets across Ontario & Canada, we bring both national reach and local market insight to negotiate the best terms for your business.

We are not your average Commercial Mortgage Loan Specialists

  • At First Choice Capital, we don’t just arrange financing — we structure solutions that others literally can’t. As former bankers with deep experience across Canada’s financial system, we know how to design commercial loans that work for your business today and in the long run. Here’s what sets us apart when we arrange a commercial real estate loan for our clients

Financing options for owner-occupied commercial property, subject to lender eligibility and review.

Financing options for land acquisition and construction, subject to project and lender requirements.

Financing options for commercial investment property, subject to lender assessment.

Higher LTV and longer amortization for special use properties (gas stations, golf courses, hotels, motels, etc.) 0

Competitive interest rates for real estate secured loans

Initial principal payment deferral up to 36 months

Up to 25 years amortization for real estate, equipment, and leasehold improvements (excluding the initial deferral period)

Up to 8 years amortization for unsecured loans (including the initial deferral period)

Up to 25% annual prepayment allowed to deleverage faster

Non-blended payments to build equity faster and reduce total interest costs

Progressive or seasonal payments to match your cash flow cycles

Limited personal guarantee requirements

Personal assets not taken as collateral

Co-lending options with multiple financial institutions

Tailored, affordable advisory services to fuel growth and efficiency

We proudly work and negotiate with these banks & lenders so you don’t have to

What is aCommercial Mortgage?

A commercial mortgage is a loan secured by income-producing properties such as offices, retail plazas, warehouses, hotels, or multi-residential buildings. Unlike residential mortgages, where approvals focus primarily on personal income, commercial financing emphasizes on 

Property’s revenue potential, overall business health, long-term investment value, a passing Environmental report (Phase I ESA) and typically a Debt Service Coverage Ratio (DSCR) of 1.20x.

Commercial mortgage rates are usually higher than residential rates due to the added risk and complexity. However, they still tend to be lower than short-term financing options such as construction or bridge loans. Most lenders also limit the amortization period of a commercial mortgage to about 20-25 years, compared to up to 30 years for a residential mortgage.

Types of Commercial PropertiesWe Finance

We arrange commercial mortgages for a wide range of property types, including

  • Office buildings, medical centres and professional spaces (Class A, B & C)
  • Retail plazas, strip malls and shopping centres
  • Industrial buildings such as warehouses and manufacturing sites
  • Hotels, motels, and hospitality businesses
  • Socials clubs & banquet halls
  • Raw land for development
  • Gas stations & car wash
  • Special-use properties (schools, places of worship like church financing, gurudwara financing, recreation centres, etc.)
  • Mixed-use developments with both commercial and residential units
  • Multi-family residential buildings with five or more rental units
  • Subdivisions, Single Family Homes or Town Home Projects, Condominium projects

Asset Repositioning

  • Enhance your property’s market appeal with financing designed for asset repositioning. Whether through renovations, upgrades, or stabilization, strategic improvements can significantly increase property value and maximize return on investment (ROI). Financing starts at $5 million and above.

Have a Time-Sensitive Commercial Financing Need?

  • If you have a purchase or refinancing deadline, contact us with the property details, required amount and available documents. Approval and funding depend on lender review, valuation, legal work and completion of the lender’s conditions. A requested deadline does not guarantee that financing will be available by that date.

Key Approval Criteria for aCommercial Mortgage

Securing a commercial mortgage involves a more detailed review process than a residential mortgage. Lenders want to ensure that the property and borrower can generate enough income to manage the debt and protect the lender’s investment.

When reviewing an application, they typically focus on the following factors:

Down Payment / Equity

  • Most commercial lenders expect borrowers to contribute between 20% and 35% of the property’s value upfront. For riskier projects, such as specialized commercial facilities, hospitality ventures, or new developments, the down payment may be even higher—sometimes as much as 40% to 50%. This substantial equity requirement reduces the lender’s risk and demonstrates the borrower’s financial commitment to the project.

Loan-to-Value Ratio (LTV)

  • Loan-to-value (LTV) compares the loan amount with the property value used by the lender. For example, a $1.5 million loan against a property valued at $2 million has an LTV of 75%. This is an illustration, not a financing offer. The amount available depends on the property, income, borrower, valuation and lender requirements.

Debt Service Coverage Ratio (DSCR)

  • One of the most important metrics for lenders is the Debt Service Coverage Ratio (DSCR). This figure compares the property’s net operating income (rental or business income minus expenses) to the required mortgage payments. A DSCR of 1.20 or higher is generally preferred, meaning the property generates at least 20% more income than the debt obligations. A strong DSCR reassures lenders that the property can support the mortgage even if revenues fluctuate.

Creditworthiness

  • Both personal and business credit histories play a vital role in approval. A higher credit score indicates financial responsibility and increases the likelihood of securing favourable terms. For established businesses, lenders may also evaluate the company’s financial performance, stability, and growth prospects. A borrower with weak credit may still qualify, but often at higher interest rates or with additional security required.

Supporting Documents

  • Commercial mortgage applications require thorough documentation to support the borrower’s case. Common requirements include:
  • Business financial statements (profit and loss, balance sheet, tax returns)
  • Commercial property appraisals performed by accredited professionals
  • Lease agreements & Rent roll for income-generating properties
  • Property records including land titles and zoning confirmations
  • Environmental assessments or building condition reports if applicable
  • Providing clear, accurate documentation is crucial, as lenders use this information to evaluate both the borrower’s financial health and the viability of the property itself.

Sign Up for Market Updates

Economic and political shifts — in Canada and around the world — directly affect the commercial real estate and lending markets. At First Choice Capital, our specialists track these trends closely and share clear, professional insights on what they mean for your financing, investments, and long-term strategy.

Related services: discuss your commercial mortgage needs, business acquisition financing, equipment financing, business plans and projections.