Commercial Mortgages in Alberta

Types of commercial property financing

• Multi-unit residential (5+ units), including CMHC-insured programs such as MLI Select for eligible rental projects
• Mixed-use buildings with retail or office space plus residential units
• Owner-occupied commercial: a shop, office or industrial bay for your own business
• Investment commercial: retail, office or light industrial with tenants
• Construction and bridge financing, depending on the project

What commercial lenders focus on

Residential lending is mostly about your personal income. Commercial lending looks hard at the property's income and value: net operating income, the debt service coverage ratio (DSCR), lease terms and tenant quality, the property's condition (often with environmental and building condition reports) and your experience and net worth as the borrower or guarantor. Expect more documents, third-party reports and time than with a home mortgage.

Typical starting package

• Rent roll and copies of leases
• Two to three years of property operating statements
• Purchase agreement, or current mortgage details if you're refinancing
• Personal net worth statement and financial statements for the borrowing company
• Photos, property details and any existing appraisal or reports

Commercial files can carry lender, legal and brokerage fees. Any brokerage fee is disclosed in writing before you commit.