Commercial PropertyPurchase Financing
Acquire income-producing commercial real estate across Canada with expert financing structured for institutional, private, and CMHC lenders.
Expert Commercial Acquisition Financing Across Canada
Acquiring commercial real estate in Canada requires specialized financing knowledge that goes far beyond residential mortgages. Whether you're purchasing your first multi-unit apartment building, expanding an industrial portfolio, or acquiring a retail plaza, the right financing structure can mean the difference between a successful investment and a missed opportunity.
Commercial property purchase financing is underwritten primarily on the income-producing capacity of the asset itself, not just the borrower's personal income. Lenders evaluate Net Operating Income (NOI), Debt Service Coverage Ratio (DSCR), capitalization rates, tenant quality, lease terms, and property condition alongside sponsor financial strength and experience.
At Mortgage Forces, we specialize in structuring commercial acquisition financing for properties from $2 million to $50 million+ across all major Canadian markets. Our access to institutional lenders, credit unions, life insurance companies, pension funds, and private capital sources ensures you receive competitive terms tailored to your specific property type and investment strategy.
From conventional bank financing with competitive fixed rates to CMHC-insured mortgages offering maximum leverage for multi-unit residential, to bridge financing when speed is critical—we structure every acquisition to optimize your capital deployment and long-term returns.
Property Types We Finance
Comprehensive acquisition financing for all major commercial asset classes across Canadian markets.
The Acquisition Financing Process
From signed purchase agreement to funded closing—a structured approach to commercial property acquisition financing.
Initial Consultation & Deal Review
We review your purchase agreement, property financials, and investment objectives to identify optimal financing strategies and lender matches.
Pre-Underwriting & Lender Selection
Property-level analysis including NOI verification, DSCR calculation, and cap rate assessment. We identify 3-5 target lenders based on property type and deal specifics.
Application & Term Sheet
Full loan applications submitted to selected lenders. Term sheets received and compared across rate, leverage, amortization, prepayment, and covenant requirements.
Due Diligence & Underwriting
Lender due diligence including appraisal, environmental review, building condition report, lease review, and sponsor financial verification.
Commitment & Legal Documentation
Final commitment letter issued, loan documents prepared by lender counsel, borrower legal review, and closing coordination with all parties.
Funding & Closing
Final conditions satisfied, funds advanced, title transferred, and mortgage registered. Keys delivered to new owner.
Key Underwriting Factors
Understanding what lenders evaluate helps you prepare stronger applications and secure better terms.
Net Operating Income (NOI)
Gross revenue minus operating expenses before debt service. The foundation of commercial property valuation and financing capacity.
NOI = Gross Income - Operating ExpensesDebt Service Coverage (DSCR)
Measures how comfortably the property's cash flow covers mortgage payments. Higher DSCR = lower risk = better terms.
DSCR = NOI ÷ Annual Debt ServiceLoan-to-Value (LTV)
Maximum loan amount relative to appraised property value. Lower LTV provides lender cushion and may improve rates.
LTV = Loan Amount ÷ Appraised ValueCapitalization Rate
Property yield based on NOI relative to purchase price. Market cap rates affect financing terms and valuation assumptions.
Cap Rate = NOI ÷ Purchase PriceSponsor Strength
Guarantor financial capacity including net worth, liquidity, and real estate experience. Critical for loan approval.
Net Worth ≥ Loan AmountTenant Quality & WALT
Tenant creditworthiness and weighted average lease term. National tenants with long leases improve financing terms.
WALT = Σ(Remaining Term × Rent) ÷ Total Rent
CMHC-Insured Acquisition Financing
For qualifying multi-unit residential properties (5+ units), CMHC mortgage insurance unlocks the most competitive rates and highest leverage available in Canadian commercial real estate financing.
CMHC MLI Select offers additional rate discounts for properties meeting affordability, accessibility, or energy efficiency criteria—reducing borrowing costs while supporting sustainable development.
Learn About CMHC MLI SelectFinancing Options for Your Acquisition
We match your property and investment strategy to the optimal capital source.
Conventional Institutional
Chartered banks, life insurance companies, and pension funds offering the most competitive rates for stabilized assets.
- Competitive fixed and floating rates
- 5-10 year terms available
- 25-30 year amortization
- 65-75% LTV typical
- Recourse with strong sponsors
Best for:
Stabilized income-producing properties with strong cash flow
CMHC-Insured Financing
Government-backed insurance enabling maximum leverage and competitive rates for qualifying multi-unit residential properties.
- Competitive interest rates
- Up to 85% LTV (95% affordable)
- Up to 50 year amortization
- 10-40 year fixed terms
- Non-recourse available
Best for:
Purpose-built rental apartments with 5+ units
Bridge & Private Financing
Short-term capital for acquisitions requiring speed, transitional assets, or properties not yet qualifying for permanent financing.
- Close in 2-4 weeks
- Flexible underwriting
- Interest-only payments
- 50-70% LTV
- 12-36 month terms
Best for:
Time-sensitive acquisitions, value-add, lease-up situations
Recent Acquisition Transactions
Representative examples of commercial property purchase financing we have structured.
Multi-Tenant Office Acquisition
Greater Toronto Area | Suburban Office Building
Purchase Price
$8.2M
Loan Amount
$5.7M
LTV
70%
Rate / Term
5.45% fixed / 5 years
Deal Highlights:
- 85% occupied at acquisition
- Strong tenant mix with 4+ year WALT
- Life company financing secured
- 45-day closing achieved
Industrial Portfolio Purchase
Ottawa-Gatineau Region | Multi-Building Industrial
Purchase Price
$12.5M
Loan Amount
$8.75M
LTV
70%
Rate / Term
5.25% fixed / 7 years
Deal Highlights:
- 3-building portfolio with single financing
- Long-term logistics tenants
- Schedule A bank execution
- Cross-collateralized structure
CMHC Apartment Acquisition
Calgary, Alberta | Purpose-Built Rental
Purchase Price
$15.8M
Loan Amount
$13.4M
LTV
85%
Rate / Term
4.15% fixed / 10 years
Deal Highlights:
- Maximum CMHC leverage achieved
- 45-year amortization secured
- Non-recourse financing
- Below-market acquisition basis
Why Use a Commercial Mortgage Agent?
Commercial property acquisitions are complex transactions where financing structure directly impacts investment returns. Working with a specialized broker provides advantages you cannot replicate going direct to a single lender.
Lender Access
50+ institutional, credit union, and private lenders competing for your deal
Optimal Structure
Match your property and strategy to the right capital source
Deal Expertise
Navigate complex underwriting and close challenging transactions
Time Savings
One application reaches multiple lenders simultaneously
Frequently Asked Questions
Common questions about commercial property purchase financing in Canada.
Ready to Acquire Commercial Property?
Let us structure the optimal financing for your commercial property acquisition. From initial consultation to funded closing—expert guidance every step.