Commercial Mortgages in Ontario: The Complete Handbook

A commercial mortgage is secured by real estate, but the property is not the complete repayment plan. The central question is whether the transaction will generate enough durable cash to pay principal and interest while leaving a margin for taxes, repairs, working capital, tenant turnover and ordinary business volatility. Collateral protects the lender if the plan fails; debt serviceability is what is expected to prevent failure.

That distinction changes the entire application. A residential borrower usually begins with personal qualifying income and household debt ratios. A commercial file begins by identifying the economic engine behind the payment. For an owner-occupied building, that engine is the operating business. For a rental property, it is the property’s stabilized net operating income. For a mixed-use asset, both streams may matter and must be separated before they can be recombined.

The Commercial Mortgage Calculator is useful only after the income method has been chosen. Entering an optimistic NOI into a precise calculator produces a precisely overstated loan. The underwriting work therefore begins upstream of the formula: classify the property, identify who pays the mortgage, normalize the income, build the expense base, and test the result under the lender’s actual payment structure.

Commercial property is not one homogeneous asset class. A neighbourhood retail plaza, an owner-occupied industrial condominium, a medical office, a low-rise apartment building and a banquet hall may all be called commercial, yet they have different income evidence, buyer pools, environmental concerns, lease structures, useful lives and enforcement outcomes. Lender appetite can vary more by property type and use than by the borrower’s requested rate.

The first classification is legal and physical use: retail, office, industrial, multi-residential, mixed-use, hospitality, automotive, restaurant, daycare, place of worship, agricultural, vacant land, development or another specialized use. The second is economic use: owner-occupied, third-party rental, partially owner-occupied, vacant, under renovation or under construction. The third is transaction type: purchase, refinance, equity takeout, construction, bridge, renewal or lender exit.

A lender may treat a small industrial condominium occupied by a long-established cabinet manufacturer as owner-occupied commercial real estate. The same unit leased to an unrelated tenant becomes an investment-property file. If half the building is occupied by the borrower and half is leased, some lenders will blend business and property cash flow; others will underwrite the two portions separately. The file should not be labelled according to whichever method produces the largest loan. It should be classified according to the actual occupancy, leases, corporate structure and lender policy.

This classification also determines the appraisal instruction. An investment property may be valued heavily through the income approach. A specialized owner-occupied property may require direct-comparison and cost analysis, with market rent used to test the real estate economics. Business profit is not automatically rent and should not be capitalized into the real estate value.

When a business buys the premises from which it operates, the mortgage is usually serviced from business cash flow. The real estate may be held in a separate property company, but the operating company remains the economic source of payment through rent, guarantees, distributions or a combined covenant structure. The lender therefore reviews the business as seriously as the building.

Historical financial statements usually establish what the business has actually generated. Interim statements show whether the most recent year remains representative. Corporate and personal tax filings, bank activity, aged receivables, inventory, debt schedules and management information may be used to reconcile the story. A business plan and projections then explain how ownership changes future cash flow; they do not erase weak historical performance without credible evidence.

The practical question is not whether the business can make the first payment. It is whether the business can service all required debt through a normal year, survive a weaker year, and still fund operations. A lender may therefore require a cash reserve, lower leverage, principal postponement, additional guarantees, or a longer amortization even when the headline DSCR appears acceptable.

A business plan is most important when the real estate transaction changes the enterprise: a new location, expansion, acquisition, start-up, relocation, additional production line or conversion from leasing to ownership. The plan should connect the property decision to customers, capacity, staffing, supply chain, licensing, working capital and management. A paragraph saying that real estate appreciates does not explain how the mortgage will be paid.

The financial model should normally contain a projected income statement, cash-flow forecast and balance sheet. For a material transition, monthly projections for at least the first twelve months are more revealing than one annual total because they show seasonality, inventory purchases, receivable delays, construction disruption and the timing of debt payments. A second and third annual projection may show the stabilized outcome.

1. 1Begin with historical revenue by product, customer, location or service line. Explain which revenue continues, which moves and which is genuinely new.
2. 2Build gross margin from volume, pricing and direct costs instead of applying a convenient percentage to sales.
3. 3Insert payroll, utilities, insurance, property taxes, maintenance, professional costs, marketing and administration at the level required by the new premises.
4. 4Include the mortgage payment, all other principal and interest, equipment leases, shareholder loans and any seller or vendor financing required by the lender’s ratio method.
5. 5Model working capital. Growth can reduce cash when receivables and inventory rise faster than payables.
6. 6Prepare base, downside and recovery cases. The downside case should identify the action management will take, not merely reduce revenue by ten percent.

For an established business, projections should usually sit beside—not replace—historical results. For a start-up or newly acquired operation, lender reliance on projections increases, but so do equity, experience, collateral and guarantee requirements. The less history available, the more the lender needs proof that the assumptions, management team and contingency funding are credible.

Debt service coverage ratio is a family of calculations, not one universal Ontario formula. A common business version divides EBITDA by annual principal and interest. Some lenders use adjusted EBITDA. Others use cash flow available for debt service after taxes, maintenance capital expenditure, working-capital requirements or owner distributions. A fixed-charge coverage calculation may also include rent, equipment leases or other contractual payments.

The denominator must be equally clear. It may include the proposed mortgage only, all corporate principal and interest, equipment debt, shareholder debt, leases, lines of credit converted to term payments, or a lender-defined global debt service amount. Two analysts can use the same financial statements and report different DSCRs without either making an arithmetic error because their definitions differ.

A ratio of 1.00x means the numerator equals the modeled debt service. It does not mean the transaction is comfortable: there is no mathematical cushion for a sales decline, repair, tax increase, delayed receivable or forecast error. A ratio of 1.25x means $1.25 of recognized cash flow for each $1.00 of modeled debt service. Some commercial transactions are commonly modelled around 1.20x to 1.30x, but there is no universal threshold. Property type, lease strength, amortization, guarantees, management, liquidity and lender mandate can move the requirement materially.

The DSCR Calculator models property NOI against mortgage debt service. It is appropriate for a rental-property analysis and for preliminary loan sizing. An owner-occupied file needs a separate business cash-flow schedule before the ratio is entered, because gross business revenue and accounting net income are not substitutes for lender-recognized cash flow.

Assume an established operating company reports $700,000 of EBITDA. The statements include a non-recurring $50,000 legal expense and a $40,000 one-time insurance recovery. The company currently pays $180,000 of third-party rent. After purchasing the building, it expects $110,000 of annual property taxes, insurance and recurring maintenance before mortgage payments.

If annual principal and interest on existing business debt is $120,000 and the proposed commercial mortgage requires $380,000, total modeled debt service is $500,000. On this simplified method, coverage is $780,000 ÷ $500,000 = 1.56x. The same file could produce a lower ratio if the lender deducts maintenance capital expenditures, taxes, distributions or working-capital needs, or if it declines part of the legal-expense add-back.

The downside case should test lower sales or margin, higher property expenses, a delayed move and a higher renewal payment. If the DSCR falls below policy with a modest stress, the solution may be a smaller mortgage, more equity, a longer amortization, subordinated seller financing, an interest-only transition period or a separate working-capital facility. The solution should address the specific pressure rather than disguise it through an aggressive add-back.

For a third-party rental property, the underwriting is more direct because the real estate itself produces the repayment cash flow. The analysis starts with gross potential income, then adjusts for vacancy, collection loss, lease incentives and non-recurring items. Recurring operating expenses are deducted to produce net operating income. Mortgage principal, mortgage interest, income tax, depreciation and owner distributions are not ordinary property operating expenses and are excluded from NOI.

The word stabilized is important. A lender or appraiser is not required to accept the seller’s latest twelve months as the future. Contract rent may be above or below market. A vacancy may be temporary or structural. Repairs may be unusually low because work was deferred. Management may be omitted because the owner self-manages. The underwriter therefore reconciles actual performance, lease obligations, market evidence and the property’s physical condition.

Use the NOI Calculator to assemble the property statement, but preserve the supporting schedule behind every line. If a tenant directly pays an expense, the analyst must understand whether both the recovery and expense should appear gross, whether they should be netted, or whether the lease transfers the obligation entirely. Consistency matters more than making the NOI look larger.

TMI is common Canadian commercial-leasing shorthand for taxes, maintenance and insurance. It is often used to describe additional rent paid on top of base rent in a net lease, but it is not a complete legal definition. The lease controls. One lease may include property taxes, building insurance, common-area maintenance, management fees, snow removal, utilities and administration. Another may exclude structural repairs, capital replacements, landlord negligence or costs attributable to vacant space.

Owner-occupied property: TMI becomes a direct occupancy cost

When the operating business owns the building, there is usually no external landlord collecting TMI. The business or related property company pays the underlying taxes, insurance and maintenance directly. These amounts belong in the proposed occupancy budget and cash-flow forecast. Removing current rent without inserting these direct costs materially overstates repayment capacity.

Where a real-estate holding company owns the property and leases it to a related operating company, the lease may show base rent plus TMI. A lender may underwrite the entities separately, use market rent, or consolidate the related companies. Internal rent cannot be counted as income in the property company and left as an unadjusted expense in the operating company when calculating combined cash flow; the analysis must eliminate or reconcile the related-party transfer.

Rental property: recoveries must be matched with expenses

For an investment property, TMI recoveries may be included in property revenue, while the corresponding taxes, insurance and maintenance remain in operating expenses. The net effect is close to neutral only when the lease permits full recovery, the tenant pays, the allocation is correct and there is no vacancy or cap. A landlord can still bear unrecovered costs, gross-up shortfalls, exclusions, capital items, deductibles and timing differences.

The new TMI definition provides a concise reference, while the Triple-Net Lease definition explains the broader lease structure. Neither replaces legal review of the lease.

The rent roll is a summary; the leases are the evidence. Commercial lenders commonly review tenant names, leased area, base rent, additional rent, commencement and expiry dates, renewal options, deposits, arrears, inducements, free-rent periods, assignment rights, termination rights and landlord obligations. The rent roll should reconcile to executed leases and to deposits received.

Lease durability matters because the mortgage may extend beyond the current income. A five-year loan supported by a tenant whose lease expires in twelve months contains rollover risk. The lender may use lower market rent, require a leasing reserve, shorten amortization, reduce the loan, obtain an assignment of rents, or require evidence that the tenant is renewing.

• Tenant concentration: one tenant representing 70% of NOI creates a different risk from ten tenants representing 7% each.
• Credit quality: a recognizable name is not enough; the actual covenant entity, guarantee and lease obligations matter.
• Related-party tenancy: rent should be compared with market and reconciled with the operating company’s ability to pay.
• Below-market lease: current NOI may be low but durable; the appraiser may consider reversion only when the lease permits it.
• Above-market lease: current collections may be strong, but value and underwriting may be reduced if renewal at that rent is unlikely.
• Vacant space: market rent is not collected rent. Leasing commissions, tenant improvements, downtime and free rent may be required before stabilization.

A clean commercial submission includes a lease-expiry schedule showing the percentage of rent and area expiring each year. It should identify renewal discussions, tenant improvements, commissions and market-rent assumptions. This is more useful than presenting a single weighted-average lease term without showing where the concentration lies.

For a rental property, the standard conceptual formula is stabilized NOI divided by annual principal and interest on the proposed mortgage. If NOI is $420,000 and annual debt service is $336,000, the DSCR is 1.25x. If the lender requires 1.25x, the same NOI supports no more than $336,000 of annual debt service before other constraints.

Debt service depends on the interest rate, amortization and payment structure. At an illustrative 6.50% nominal rate compounded semi-annually with a 25-year amortization, $336,000 of annual level monthly payments supports approximately $4.18 million of debt. A higher rate or shorter amortization reduces the loan even when NOI is unchanged. An interest-only period may improve initial coverage but creates a larger maturity balance and does not prove that the permanent structure is affordable.

The DSCR Calculator shows current coverage, required NOI and payment-supported loan capacity. The Commercial Mortgage Calculator then combines payment, LTV, loan-to-cost, debt yield and transaction cash. A borrower should expect the lender to use its own NOI, rate, amortization and rounding conventions.

Consider a small Ontario commercial property with $520,000 of annual base rent, $160,000 of TMI and other recoveries, and $20,000 of other recurring income. The lender applies $35,000 of vacancy and collection loss. Property taxes are $95,000, insurance is $25,000, repairs and maintenance are $45,000, utilities are $30,000, management is $34,000 and other operating costs are $16,000.

At a 1.25x target DSCR, maximum annual debt service is $336,000. At the illustrative 6.50% rate and 25-year amortization, that supports approximately $4.18 million. Now assume the appraiser capitalizes the same $420,000 NOI at 6.75%, indicating $6.22 million of value. At 70% LTV, value supports approximately $4.36 million.

This interaction explains why commercial financing should not be quoted from one ratio. The borrower may improve loan capacity by increasing sustainable NOI, reducing the price, increasing equity, negotiating a longer amortization, improving the interest rate, obtaining stronger leases, or selecting a lender with a different risk appetite. The correct lever depends on which constraint is binding.

A capitalization rate converts stabilized property income into an indication of value. In direct capitalization, value is generally indicated by dividing stabilized NOI by the market-derived cap rate. Conversely, cap rate is NOI divided by value. The formula is simple; selecting the NOI and cap rate is not.

Appraisers examine property type, location, tenant covenant, lease term, rent relative to market, vacancy, condition, growth expectations, comparable sales and capital-market evidence. A lower cap rate produces a higher value for the same NOI; a higher cap rate produces a lower value. The cap rate is not chosen to make the mortgage work and should not be copied from a different city, asset class or transaction date.

The Cap Rate Calculator is useful for sensitivity analysis, not as a substitute for an appraisal. The appraiser may use direct comparison, cost, direct capitalization, discounted cash flow or more than one approach. CUSPAP requires relevant market evidence for income, expenses and capitalization or discount rates when the income approach applies.

A borrower should read the appraisal beyond the final value. Review the stabilized rent, vacancy, expense ratio, cap rate, comparable sales, market-rent conclusion, extraordinary assumptions, environmental reliance, remaining economic life and marketability commentary. A value that depends on a lease renewal, rezoning, completed renovation or unverified income may not be accepted as an unconditional lending value.

DSCR measures payment coverage. Loan-to-value measures debt against lender-accepted property value. Debt yield measures NOI against the loan amount without using the interest rate or amortization. Loan-to-cost measures debt against eligible acquisition, construction or project cost. Each ratio sees a different dimension of risk.

Debt yield is especially useful when a low rate or long amortization makes DSCR appear generous. If NOI is $400,000 and the requested loan is $5 million, debt yield is 8%. It remains 8% whether the rate is 5% or 8%. DSCR changes with the payment. The lender may therefore use debt yield as a separate downside check.

LTV depends on accepted value, not the purchase price or the borrower’s opinion. A commercial appraisal may be lower than price because of cap-rate evidence, market rent, condition, environmental stigma, specialized improvements or weak marketability. Construction files may be limited by both as-is and as-complete value, LTC, equity advanced first, cost-to-complete and a takeout commitment.

The Debt Yield Calculator isolates the rate-independent test. The Loan-to-Value definition, Debt Yield definition and Loan-to-Cost definition provide concise references for the different ratios.

A commercial mortgage is rarely underwritten on the property in isolation. Lenders review the borrower’s legal structure, net worth, liquidity, credit, management experience, ownership, other properties, contingent liabilities and ability to support the asset during vacancy or disruption. The person promoting the transaction is often called the sponsor even when the borrower is a corporation or limited partnership.

Liquidity is different from net worth. A borrower may have substantial equity in other real estate but insufficient cash to fund closing, tenant improvements, repairs or a temporary shortfall. Lenders may require evidence of cash after closing, not merely the down payment. They may also limit how much borrowed money or vendor financing counts as equity.

• Experience: ownership or management of similar property, construction or business operations.
• Credit and conduct: repayment history, tax obligations, judgments, insolvency events and explanations.
• Net worth: assets less liabilities, supported by statements and reasonable valuations.
• Liquidity: cash and near-cash available after the transaction, with source-of-funds evidence.
• Guarantees: personal, corporate, limited, completion, environmental or other guarantees depending on the file.
• Succession and key-person risk: whether the business or property can continue if a principal leaves.
• Concentration: exposure to one property, tenant, business, industry, lender or maturity date.

Where multiple corporations are involved, the file should include an organization chart and a clear explanation of cash movement. The property company, operating company, management company and guarantors may each hold different assets and obligations. Related-party receivables, shareholder loans and intercompany rent should be reconciled so the lender can see which cash is actually available to service which debt.

A commercial submission should let the underwriter reproduce the analysis. Sending a purchase agreement, two financial statements and a requested loan amount is not a complete file. The package should identify the transaction, legal borrowers, property use, requested structure, sources and uses, repayment engine, normalized cash flow, ratio calculations, security, material risks and mitigants.

The narrative should explain—not conceal—weaknesses. A vacancy, declining year, environmental flag, related-party lease or urgent closing is easier to assess when disclosed early with evidence and a mitigation plan. Discovering it late can damage credibility and delay or terminate the approval.

The Commercial Mortgage Checklist and Commercial Due Diligence Checklist can be used as working documents. They should be tailored to the property and lender rather than treated as a universal closing list.

Third-party reports are not administrative formalities. They can change the loan amount, require remediation, create holdbacks or make the property unacceptable. Commercial timelines should assume the lender needs time to approve the professional, review the report and resolve any recommendation.

Commercial appraisal

The appraisal may address direct comparison, cost and income approaches, market rent, stabilized NOI, cap rate, remaining economic life and marketability. The lender may require an AACI-designated appraiser or another approved professional and may rely on a value lower than the report’s headline conclusion if conditions or assumptions remain.

Environmental site assessment

A Phase I environmental site assessment reviews historical and current use for potential contamination concerns. Depending on the findings, a Phase II investigation, remediation, reliance letter, environmental insurance or lender decline may follow. Automotive, dry-cleaning, fuel, industrial and neighbouring uses can be material, but environmental review is not limited to those categories.

Building condition and capital plan

A building-condition assessment may identify roof, structure, envelope, electrical, mechanical, plumbing, fire-safety and accessibility work. The immediate repair amount can reduce proceeds or create a holdback. The medium-term capital plan can affect NOI, reserves, DSCR and the borrower’s required liquidity.

Zoning, legal use and title

The lender and lawyer may review permitted use, legal non-conforming status, occupancy, building permits, easements, encroachments, access, parking, restrictive covenants, work orders, tax arrears, liens and existing charges. An appraisal assumption that a use is legal does not prove legality. A mortgage approval does not correct zoning or title.

The same financial ratios can be interpreted differently across property types because the cost and time to re-lease, reuse or sell the asset differ. A flexible small-bay industrial building in a liquid market may attract broader lending than a highly customized event venue with identical NOI and leverage.

A lender decline may mean the property is outside that lender’s mandate, not that the transaction is inherently impossible. The response should not be to submit the same package indiscriminately. It should identify why the property failed, which lender category has relevant appetite, and whether the economics support the higher cost or lower leverage of that category.

The Mixed-Use Property chapter gives additional classification detail. The Hamilton mixed-use case demonstrates why property type, ownership transition and lender appetite can dominate a file that cannot be treated as a standard residential mortgage.

Commercial financing may come from chartered banks, credit unions, trust companies, government-backed or insured channels, commercial finance companies, mortgage investment corporations, institutional funds and individual private lenders. Product labels overlap, and pricing alone does not identify the best structure.

A commercial commitment may specify a term shorter than the amortization, demand features, annual review, financial covenants, reporting obligations, prepayment terms, assignment of rents, general security, guarantees, environmental indemnities, reserves and conditions precedent. The borrower should review the complete legal and economic package, not only the rate and monthly payment.

Private financing can be appropriate for an urgent closing, title transition, renovation, stabilization or temporary documentation gap. The Brampton commercial-unit case shows a private bridge used when appraisal and environmental due diligence had to be completed in an eight-business-day window. The private loan was not the end state; the planned institutional refinance was part of the structure.

Purchase

A purchase file begins with price, appraisal, equity, sources and uses, closing date and due diligence. The borrower should budget legal, appraisal, environmental, building, lender, brokerage, registration, land-transfer, adjustment, renovation, moving and working-capital costs. The amount not financed must be verified and remain available through closing.

Refinance and equity takeout

A refinance may repay existing mortgages, taxes, business debt or shareholder advances and may release capital. The lender will ask what the proceeds do and whether the new mortgage improves or weakens debt serviceability. Extracting equity from a profitable property to fund an operating business can create concentration: a business loss can then threaten the real estate.

Construction and renovation

Construction financing adds budget, draw, lien, cost-to-complete, permit, contractor, contingency and completion risk. Advances may be based on work completed and may require borrower equity first. Interest reserves do not make an uneconomic project economic; they only fund carrying cost during an approved period.

Bridge and stabilization

A bridge loan may cover closing before permanent financing, lease-up, renovation, title work or an ownership transition. The exit should identify the exact event that improves financeability: completed work, signed leases, stabilized NOI, environmental clearance, sale or institutional commitment. ‘Refinance later’ is not a complete exit strategy.

The Waterloo low-rise apartment case illustrates the interaction of property type, high requested leverage, borrower challenges and a five-day closing. The Brampton place-of-worship construction case illustrates specialized-use and construction risk in the same transaction.

Commercial files often take longer than residential files because the lender must review more moving parts and third-party reports. An early indication is not the same as a commitment, a commitment is not the same as satisfied conditions, and satisfied credit conditions are not the same as legal funding.

1. 1Initial triage: classify property, occupancy, transaction, requested loan, timing and obvious mandate issues.
2. 2Financial analysis: normalize business cash flow or property NOI, calculate all relevant ratios and identify the binding constraint.
3. 3Lender strategy: select lenders whose property, geography, loan size and risk appetite match the file.
4. 4Indicative terms: compare amount, rate, fees, amortization, recourse, reporting, conditions and timing. An indication can change after due diligence.
5. 5Third-party reports: order appraisal, environmental, building, quantity-surveyor or other reports through lender-approved channels where required.
6. 6Credit approval and commitment: review all conditions, covenants, representations, guarantees, reserves, prepayment and default provisions.
7. 7Condition satisfaction: deliver final financial, corporate, property, insurance and legal evidence without changing the transaction.
8. 8Legal closing: complete title, security, priority, registrations, opinions, assignments, guarantees, payouts and funds flow.
9. 9Post-closing: comply with reporting, covenants, tax and insurance obligations and prepare for maturity well before the term ends.

BDC’s public commercial-real-estate guidance notes that lender due diligence may require more time than a short purchase condition allows. The practical response is to involve financing, legal and technical advisers before conditions are waived, not after the purchase becomes unconditional.

Commercial files often fail through cumulative inconsistencies rather than one dramatic defect. The purchase agreement shows one buyer, the appraisal another intended use, the rent roll does not match the leases, the borrower’s NOI excludes management, the business projection omits property taxes, and the debt schedule leaves out an equipment loan. Each issue may be repairable; together they undermine the lender’s confidence in the analysis.

• The request is sized from LTV while DSCR supports materially less debt.
• Gross rent or gross business revenue is used as though it were cash available for debt service.
• TMI recoveries are counted without matching expenses, or recoverability is assumed without reading leases.
• Current rent is added back in an owner-occupied purchase without inserting proposed taxes, insurance, maintenance and transition costs.
• Projected revenue growth is unsupported by capacity, contracts, staffing, market evidence or working capital.
• Only the proposed mortgage is included in debt service while existing corporate and equipment debt remains.
• The appraisal is ordered for the wrong use or from a professional the lender will not accept.
• Environmental, zoning, legal-use, building or title issues are discovered after conditions are waived.
• The borrower has equity but insufficient liquidity for closing, repairs, vacancy or cost overruns.
• A short-term private loan has no dated, measurable and financeable exit.

A declined file should be reverse-engineered. Identify whether the controlling issue was property mandate, value, NOI, DSCR, debt yield, borrower credit, liquidity, guarantee, environmental condition, timing or documentation. That diagnosis determines whether the next step is another lender, a changed structure or no transaction.

1. 1Define the transaction and property use. Confirm owner-occupied, rental, mixed-use, construction or transitional status.
2. 2Identify the repayment engine. Use business cash flow for owner-occupied property and stabilized NOI for rental property; separate the components in mixed-use files.
3. 3Normalize income and expenses. Reconcile financial statements, leases, rent roll, TMI, vacancy, related-party items and one-time adjustments.
4. 4Calculate coverage using the lender’s definitions. State the numerator, denominator and treatment of all existing debt.
5. 5Size the loan independently by DSCR, LTV, debt yield and LTC, then use the lowest supportable amount.
6. 6Test the appraisal logic. Review market rent, stabilized NOI, cap rate, comparable evidence and assumptions rather than relying only on the final value.
7. 7Review sponsor strength and post-closing liquidity. Confirm guarantees, experience, source of equity and capacity to absorb a weaker period.
8. 8Complete property due diligence. Environmental, building, zoning, title, lease and insurance issues can change both value and lender appetite.
9. 9Compare complete commitments. Review amount, cash required, term, amortization, covenants, reporting, recourse, fees, prepayment and maturity risk.
10. 10Build the closing and maturity plan. Allow time for reports and legal work, and begin renewal or exit preparation before the term becomes urgent.

Use the Commercial Mortgage Ontario service page for a file-specific review. For preliminary modelling, use the Commercial Mortgage Calculator, NOI Calculator, DSCR Calculator, Cap Rate Calculator and Debt Yield Calculator as separate checks rather than treating one output as approval.