Commercial Mortgage

We Make It Easy To Get A Commercial Mortgage Or Equity Takeout!

What Is A Commercial Mortgage?

A commercial mortgage in Canada is a mortgage loan given to the owner of a property that is not considered a residential home. It is often times one of the largest financial investments that an investor makes in their life. The lender has security that the loan will be paid back because they have your property as collateral. In some cases, you may be required to assign multiple properties as collateral to account for any shortcomings to available equity or your ability to qualify for the full amount that you require.

At Clover Mortgage, we make it easy for our customers to apply and get approved for a commercial mortgage from as little as $100,000 to over $100,000,000.

An industrial building, office unit, apartment building, shopping mall, storefront plus apartments, retail plazas, and hotels are just some examples of the different types of commercial properties that you can get financing in the form of mortgages on. Similar to residential mortgages on a home, a commercial mortgage loan can come in the form or a first, second, or third mortgage, although first and second mortgages are much more common than third mortgages are.

Mortgage Affordability Calculator

Our Clover Mortgage Affordability Calculator can help you determine how much of a mortgage and property you can afford.
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You potentially qualify for a maximum mortgage of up to $0,00 or a maximum monthly mortgage payment of up to $0,00*

*This is not a pre-approval and not an approved mortgage quote. This is merely an estimated calculation based on a 39% maximum TDS and the maximum mortgage amount and maximum monthly mortgage payment that you might qualify for may vary depending on a variety of factors including, but not limited to, the loan to value, the credit scores and credit histories of all applicants, the income reported on official government filed tax documents, the location and condition of the property, and more. For a more precise quote, please contact Clover Mortgage by phone 416-674-6222 or by email at

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While you can get a commercial mortgage form many types of the same lenders that provide residential mortgages, such as a bank, credit unions, trust companies, and private lenders who invest their personal money into mortgages, the interest rates are typically slightly higher on this form of financing than the rates on residential home mortgages. The lowest interest rates for commercial mortgages are on first mortgages that are insured by a third-party mortgage insurance policy from a company like the CMHC. CMHC specialized in mortgage insurance and do not provide other more traditional kinds of insurance such as life insurance or auto insurance.

Applying for a commercial mortgage requires more time, effort, and documentation than a residential mortgage. With the help an experienced professional mortgage broker from Clover Mortgage, your search for the right commercial mortgage can be easy. You will be presented with tailored mortgage solutions specifically made to cater to your needs and goals. We will find the best lender and find the right mortgage program for your commercial and business needs. Our commercial brokers work hard to provide you with the highest level of customer service and get you approved for a commercial mortgage loan easily and hassle-free.

A private commercial mortgage is one of the easiest types of commercial mortgages to qualify and in many cases, you will not be required to go through a credit check. If credit is a concern, then a private mortgage may be the best solution. Even if a credit check is required, a private lender will still likely lend to you if you have bad or even horrible credit. Your interest rate may be higher if your credit score is extremely poor and you have a history of missing payments.

Our commercial mortgage brokering team is able to arrange commercial mortgages and equity take out loans for almost any type of project including:

  • mixed-use
  • storefront plus apartments
  • multi-family
  • retail
  • office buildings
  • industrial
  • hotels
  • medical buildings
  • shopping malls
  • warehouses
  • land purchase and redevelopment
  • construction projects

Our team of commercial experts specializes in getting fast approvals and finding innovative and unique solutions quickly, while providing exceptional customer service.

We will find the right lender for your deal to ensure that you receive some of the most competitive interest rates. Clover has access to a wide range of fixed rate, variable rate and interest only commercial mortgages from over 40 banks and lenders.

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How To Get Approved For A Commercial Mortgage?

The process of getting a commercial mortgage or refinancing a property you already own can be a daunting task. Our promise to you is to help make this process as simple and hassle-free for you as possible.

Due to the risk factors to the lenders, additional work and information is required for a commercial deal that isn’t needed in the residential market. Although most commercial deals will require an appraisal, in some cases lenders will ask that an environmental study be conducted on the property and the land that it sits on. Other factors such as lease agreements, the quality of the tenants, the condition of the property, income statements, and more.

Here Is A List Of Some Of The Information And Documents That Are Most Commonly Required To Qualify For A Commercial Mortgage Loan:

  • Two pieces of id such as a drivers licence, social insurance card, passport, citizenship card, credit card, etc.
  • A commercial real estate appraisal conducted by a reputable commercial appraisal service provider will be required in most cases
  • In most cases a site inspection will be required where the lender or a member of their team will go on site and inspect your property.
  • Current rent rolls and list of tenants
  • Leasing agreements to account for declared revenues and income
  • Income and expense statement or a list of expenses for the commercial property
  • Property tax bill in the case of refinancing or a mortgage renewal
  • Current mortgage statement in the case of refinancing or a mortgage renewal
  • Notice of Assessments (NOA) or T1 Generals for the most recent 2 years
  • Proof of down payment for new purchases only
  • Proof of source of down payment (only applicable on new purchases). You need to account for where your down payment or deposit is coming from
  • Proof of any additional assets
  • Business licence or articles of incorporation
  • If you own other properties then mortgage statements, tax bills, and leases or rental agreements for all other existing properties
  • In certain cases, a phase 1 environmental survey may be needed
  • Further surveys and documentation may be required depending on the content in other documents
  • Sometimes you may be asked for information on the property management company, or the management team that is responsible for the day-to-day operations.

All of these documents are not merely reading content for the lender, but they help the lender understand and analyze the deal more accurately so that they can feel more confident about their decision.

Having a financial plan for your business and property will help you convince a lender that they should grant you your commercial mortgage. Remember that mortgage lenders seek out opportunities that are backed by the security of commercial properties and make them feel confident that they will continue to receive a steady fixed income from their investments. By providing them with proof that your property is generating a high fixed monthly return provides the lender with more peace of mind. This can also help you qualify for a lower interest rate which could result in real deep savings. Proof of income, financial stability, or high net worth can also help you get approved for a better rate. People who have well-paying careers or a high yielding portfolio are seen as posing a smaller risk to the lender.

At Clover Mortgage, our professional experienced commercial mortgage brokers specialize in the Canadian commercial mortgage industry. We will be able to help guide you along your the application process and ensure that you have everything needed to qualify for the mortgage loan so that you can continue to grow your business. Our goal is to help you feel a real sense of relief when you see how easy it can be to get approved for a commercial mortgage.

After reviewing your needs and current situation, our commercial mortgage team will search and find the best and most suitable lender to provide a competitive quote to finance your business mortgage. Once the quote is received and reviewed, your mortgage broker will negotiate with the lender on your behalf to get the best possible mortgage terms, conditions, and the lowest rate possible for you. Your mortgage term will vary on your qualification.

Applying for a commercial mortgage is easy. You call or text us at 416-674-6222, or contact us by email at to get in contact with an experience commercial mortgage agent.

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How Much Equity I Can Take Out From My Commercial Property?

When refinancing a commercial estate, it is important to be able to determine how much equity you will have remaining in your real estate property, and how much will the total loan to value (LTV) be. Commercial mortgage lenders all have a loan to value threshold that they will lend up to. This is partly due to the fact that lenders want to ensure that the borrower has enough skin in the game to be motivated enough to make their monthly mortgage payments on time and not default on the loans. They also want to be sure that there is enough equity remaining in the real estate that in case they will need to go through with a power of sale, that they will be able to recoup 100% of their investments.

Calculating The Loan To Value For The Refinancing Of A Commercial Mortgage

Use the following simple formula to calculate the loan to value of your building.

LTV = total mortgage balance divided by the property value multiplied by 100

Let’s take borrower who owns a multi-family building in a busy city centre with a growing local community that is worth $4,000,000 and they now have an outstanding mortgage balance of $1,000,000. They are coming up for renewal and are looking to refinance and take out an additional $1,000,000 in cash bringing the total mortgage balance to $2,000,000. They intend to use some of the money to renovate the current estate and part of the funds to purchase a new commercial building.

In this example the loan to value will be calculated as follows:

LTV = $2,000,000 (total mortgage balance) divided by $4,000,000 (property value) multiplied by 100 = 50%

This borrower is looking to refinance their current mortgage at an LTV of 50%. Generally speaking, in today’s market, this can be a very easy mortgage to get approved with great terms and a competitive rate. First mortgages will come with a lower interest rate than seconds, depending on a variety of factors Clover Mortgage can provide most borrowers with solutions that fit their needs and current financial situations.

Please try our Equity Calculator tool to help you calculate the equity you have available in your property. Please visit our main Tools page on our website to see what other mortgage calculators and tools could be of help to you.

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Why Are Commercial Mortgages More Risky To Lenders Than Residential Mortgages?

Unlike residential mortgages which are usually given to an individual, a commercial mortgage is often sought out by a business or corporation. As a result, it can be more difficult to assess credit and income history for this type of loan than it would for a residential mortgage.

It is also likely that mortgage rates on commercial purchases and commercial refinancing will be higher than residential properties because they pose an increased risk to the lenders. The reason why commercial mortgages can be risky is that repayment is dependent on the success of the borrower’s business or solely based on rental income and lease income. As a result lenders tend to be more cautious when providing a mortgage for a commercial property.

What Are The Payment Options For Commercial Mortgages?

The payment options for a commercial mortgages are very similar to those of residential ones. A variable interest rate with flexible terms allows the borrower to repay their mortgage as quickly or as slowly as they want. A fixed interest rate is the perfect option for a borrower looking to make consistent monthly payments throughout the course of their term because they prefer to feel protected against rising rates ahead.

All in all, searching for a commercial mortgage can seem complex and intimidating but it doesn’t have to be. With help from our trusted and knowledgeable commercial mortgage agents at Clover Mortgage, finding the right commercial mortgage solution for your business and personal needs can be an easy task.

Whether you are looking to buy a commercial or mixed-use property, or if you already own commercial properties and need to take out equity, the commercial mortgage team at Clover can help you get approved for a commercial mortgage or equity loan that is right for you. Our team will always fight to get you the lowest rates and best terms possible.

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What Are The Pros And Cons Of Refinancing Your Commercial Mortgage?

Here are some benefits to refinancing your existing commercial mortgage loan:

  • Increase property value and get higher rental rates and leasing rates. You can use the money that you get from refinancing your existing mortgage loan to service, renovate and improve your property. This will help increase the value of your commercial estate in the event that you decide to sell it or refinance it further. If you intend on keeping your estate, renovating and implementing improvements can help you charge higher leases and rents, and help with you cap rate and cashflow.You can even modernize your building so that there is accessibility for people with disabilities. In many cases, accessibility can be a large expense and add tremendous value to a commercial property.
  • Expand your investment property portfolio. Invest the money you take out of your commercial property by using it as a down payment on the purchase of new investment properties or businesses to continue your expansion into the real estate investment market. Often times a commercial property owner will own several commercial properties throughout their life.
  • Consolidate other debts. If you own a commercial property and you have high amount of higher interest debt, such as credit cards, then you can use a portion of the available equity to pay down those debts and lower your overall monthly payments. Credit card debt is especially notorious for having ridiculously high interest rates. You can get an equity take out loan at a much lower rate than the interest you are paying to the credit card companies. You can use the money you save and pay down your debts faster.
  • Invest in your business. If you need some working capital or financing for your main or any other business and you own some commercial real estate, then you can take out some of the available equity from your commercial building and invest that money into growing your business. Imagine what some extra working capital may help you accomplish in the development of your business.
  • Get a lower interest rate and better terms. Depending on your current mortgage rate and the rate that you would qualify for with a new mortgage, you might be able to save a lot of money and lower your monthly payments by reducing your interest rate and improving your mortgage terms. If you currently have an existing first and second mortgage, then you might benefit from consolidating both mortgages into one single first mortgage.
  • Buyout a partner. With the extra cash, you might be able to buy out or buy back shares in the property or in a business form a business partner.
  • Corporate Tax Write Off. In many cases, the interest paid for a commercial mortgage can be written off against your corporate taxes. Saving on taxes can account for a real big impact on the financial success of a business. Speak with your accounting professional to learn more.
  • Hold onto your investment longer. If you need cash quickly, sometimes one of the best options is to refinance your commercial property. It may be one of your only feasible options because selling it could force you to pay a lot of money for capital gains tax. Please speak with your accountant about this because everyone’s tax situation is different.

Here are a few potential drawbacks to refinancing your commercial mortgage:

  • Increased monthly payments. If you are increasing your mortgage balance you might also end up with higher monthly payments. This will depend of course on the amount of the new mortgage, the terms and conditions, and interest rate that you would qualify for when you select to refinance.
  • Increased interest rate. Depending on your current interest rate and the rate that you would qualify for when you select the option to refinance you mortgage, you may end up with a higher interest rate.

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What Are Some Of The Benefits Of Working With A Mortgage Broker?

  • We are accountable to YOU!
  • You will always know the status of your application. We will update you regularly by phone, email, or text.
  • 100% Independent Unbiased Advice – As a mortgage brokers and agents, we always put the needs of our clients first. We are not associated with, or obligated to, any banks or lenders.
  • Access and to over 40 institutional and private lenders such as banks, credit unions, trust companies, private lenders and more.
  • We are always on call for you ready to answer your questions and respond quickly to any calls, emails, or texts.
  • Quick turnaround time – We’re able to arrange financing for commercial properties in as little as a few days or a few weeks in many situations. This is critical to deals that have quick closings.
  • You will always get honest and unbiased guidance and advice. That’s our commitment to you!
  • Even if you have bad credit, poor income, or another challenge we can help get you approved for a mortgage, even if you’ve been turned down by banks and lenders in the past.

Whether you need a quick and easy or a complex commercial mortgage solution, Clover Mortgage can help you get the best rates and terms available to you quickly and easily.

Frequently Asked Questions (FAQ’s) About Getting A Commercial Mortgage

What deposit is required for a commercial mortgage?

When purchasing a commercial building or property, you should always plan on providing a deposit. The standard deposit or down payment for a commercial mortgage purchase is between 20% to 25%, although Clover Mortgage works with lenders who offer commercial mortgages with a small percent as a down payment or deposit.

The acceptable deposit amount will differ between a first mortgage and a second commercial mortgage.

Here is a simple chart to help you better understand the minimum required deposit or down payment to qualify for a commercial mortgage on the purchase of a commercial property.

Property Type

Minimum Deposit Required

Storefront with apartments (mixed use) mortgage


Multi-family residential mortgage


Commercial plaza mortgage


Office mortgage


Industrial mortgage


Farm land mortgage


Construction project and development mortgage


Retail mortgage


A CMHC insured mortgage can help keep the amount required for a deposit low while also reducing the rate that you pay in interest on your commercial mortgage. Rates of course depend partially on the term of your mortgage. Speak with your commercial mortgage broker about the benefits of having mortgage insurance.

Private commercial mortgage lenders also tend to approve borrowers with a lower down payment than a bank would require.

How does a commercial mortgage work?

A commercial mortgage is a real estate loan that is secured by liens placed on a commercial property by the investor who is investing either institutional money, like a bank, or their own personal money, such as a private lender, into the mortgage loan.

For a new commercial purchase, you will be required to invest a deposit or down payment to qualify for the mortgage. The minimum required amount for a down payment for these types of mortgages are determined by the investor based on the amounts for these types mortgages that borrowers will for. This is determined based on the property value and several other factors.

Similarly to residential mortgages for a home, commercial mortgages are repayable in varying term lengths and at different fixed and variable interest rates. You can have a term of 1 year, a 2 year term, a 3 year term, a term of 5 year, or an even longer term. Also, commercial property loans can be amortized over a per-determined number of years.

These types of amortized mortgage loans are repaid in the form of fixed installment until you completely pay the full mortgage balance back to the lender in addition to the interest.

The commercial mortgage industry is a booming industry, especially in a major Canadian city centre like Toronto, Mississauga, Brampton, Ottawa (the capital city of Canada), and other populated cities in Ontario and across Canada. This is why Clover has mortgage brokers who have built their careers specializing in the commercial lending markets across Ontario. We work with over 40 different lenders including TD Bank, Scotia Bank, First National Bank, and other A, B, and private lenders. Each lender specialized in lending to specific types of borrowers with specific kinds of properties.

Use or service to apply for a commercial mortgage. You can call or text us at 416-674-6222, or contact us through email at to get in contact with a licenced and experienced commercial mortgage broker.

Are commercial mortgages more expensive than residential mortgages?

Commercial mortgages do tend to have higher variable and fixed interest rates than other mortgages because they come with elevated risks to those who are lending the funds. It is always a good idea to plan on spending more on your commercial mortgage than you would on a residential mortgage of a home of similar value. The difference in interest on these mortgages can be as little as 0.5% higher or can be significantly higher depending on a variety of factors, including location, that the lenders will consider when reviewing your mortgage application. It’s good to keep in mind the interest rates on commercial mortgages vary across different Canadian markets, so speak with a mortgage broker who can help guide and advise you as part of the services they offer. The services that a reputable mortgage broker can provide you with can save you a lot of time and money in the long run.

For example, a commercial building in Canada located in a busy city centre like Mississauga, Ottawa, or Toronto will likely carry a lower interest rate than a property located in a small rural centre like Fort Erie, Ontario. This is because lending in a heavy populated city exposes the lender to less risk, which results in lower interest rates. Lower interest rates result in real savings for the borrower.

Since a commercial mortgage transaction is typically more complex, the legal fees tend to be higher too. You should speak with your lawyer to get a better understanding of how much money you should set aside to cover your legal expenses related to closing the deal.

To get the lowest rates and monthly payments on your commercial mortgage, your broker provides services that can help you explore adding mortgage insurance from a company like CMHC. Also, you should always compare the difference between fixed and variable rates.

Try our Mortgage Payment Calculator tool on our website to help you calculate what your monthly commercial mortgage payments will be. This is just one of the calculators that we made available to help you plan for your future.

Can a commercial mortgage broker really help me?

A good commercial mortgage broker will provide you with all of the unbiased honest guidance and consulting services you need to ensure that you get matched with the mortgage that is best suited for you. The services we provide at Clover Mortgage will help you through the entire application process and we will find the right lender and negotiate the lowest rates and best terms on your behalf.

Will I get to meet the lender directly?

For the most part you will get to meet and communicate with the lender directly, although some private lenders value their privacy, so instead you may meet with and speak with a member of their representing team. Some lenders value their privacy so much that you may never know the person who will directly finance your loan.

Commercial mortgages account for a large portion of the mortgage that Clover brokers. With so many commercial mortgage solutions available, it can be hard and confusing to find the one you need. At Clover Mortgage, our team of experienced commercial mortgage agents and brokers are here to help.

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Why Work With Us

Low Rates

*Commercial Mortgage Rates start as low as 7.75%

*Rates are subject to change. Terms & conditions may apply.

Fast Service

We pride ourselves on quick, easy & honest service. Our clients always come first.

Bad Credit

We specialize in dealing with bad credit & bank declines. We turn a “no” into a “YES!”

Easy Application

*No credit checks. No complicated application and no income required!

*Terms & conditions may apply.

Call Us Today at 416-674-6222 or Toll Free at 1-800-673-2230 for a Free No-Obligation Commercial Mortgage consultation.

Our Customers Love Us

Sandra F.
Sandra F.
I was in debt and needed help getting back on track. My mortgage agent at Clover Mortgage helped me get approved for a home equity loan to consolidate all of my debt in one small monthly payment. Now I’m saving over $1,000 a month in interest and am left with less debt and more money in my pocket at the end of each month. Thank you Clover!
David J.
David J.
I'm a self employed independent contractor. I earn a decent income, but when I went to the bank to refinance my home, they denied my application telling me that I didn't have enough "provable" income to qualify for refinancing my home. When I came to Clover I was almost out of hope. My Mortgage Agent at Clover was caring and professional, and help me get a great rate and flexible terms on full refinance. The whole process took less than 48 hours! I was impressed at how quickly and easily they were able to get me the money and home refinance I needed. Thank you Clover Mortgage, I'm recommending you to everyone I know!!
Andrea R.
Andrea R.
I had really bad credit, but really wanted to purchase a Condo. When I went to the bank they made me go through a lengthy application process that took weeks, and then they turned me down at the end of it all. When I found Clover Mortgage online, I called them and a friendly Mortgage Agent was able to help me get approved for a mortgage quickly and hassle-free. I got a good rate and now live in a home that I am comfortable in and am able to easily afford my monthly payments.
Ankur R.
Ankur R.
I definitely recommend Clover Mortgage to any new home buyer! They were very professional and helped my husband and I get mortgage for our new home at an even better rate than the bank was offering us. They also helped us get the mortgage with a smaller down-payment than the bank demanded from us. Since we did our mortgage with Clover, several of our friends and family members got their from them also, and Clover Mortgage has been able to help all of them, even the ones that were completely turned away and rejected by their banks.
Janet L.
Janet L.
My husband and I found ourselves in a tough situation. Luckily my expert mortgage broker at Clover Mortgage helped us get a fast and easy approval for an amazing rate for refinancing our home. Clover's service is the best I've ever experienced and I've been recommending them to all of my family members and friends ever since. Thanks for your help Clover!
Raj I.
Raj I.
I definitely recommend Clover Mortgage to any new home buyer! They were very professional and helped my wife and I get mortgage for our new home at an even better rate than the bank was offering us. They also helped us get the mortgage with a smaller down-payment than the bank demanded from us. Since we did our mortgage with Clover, several of our friends and family members got their from them also, and Clover Mortgage has been able to help all of them, even the ones that were completely turned away and rejected by their banks.