Commercial Mortgages Ottawa: Financing Built for Business
Whether you're acquiring income-producing property, financing the building your business calls home, or bridging to a development play. Commercial mortgage financing requires a different approach. Jessy Gill structures commercial deals across banks, credit unions, life companies, MICs, and CMHC programs.
Asset Classes
Commercial Property Types We Finance
Office Buildings
Professional and medical office buildings, from suburban suites to downtown Ottawa office properties.
Retail & Mixed-Use
Strip malls, ground-floor retail, restaurants, and mixed-use buildings with residential upper floors.
Industrial & Warehouse
Light industrial units, flex space, warehouses, and distribution facilities throughout the Ottawa region.
Multi-Residential (5+ Units)
Apartment buildings and purpose-built rentals. CMHC MLI Select available for eligible projects.
Land & Development
Acquisition financing for development-ready land with plans in place. Bridge and construction also available.
Owner-Occupied Business
Buying the building your business operates from. Often structured with SBA-equivalent Canadian programs.
Key Concept
What Commercial Lenders Actually Look At
Commercial mortgage underwriting is fundamentally different from residential. While personal income matters, the most important metric is the property's ability to service the debt on its own, measured by DSCR.
A property with strong, diversified tenants on long-term leases will qualify differently than a single-tenant property with a short lease remaining, even if the financial profile of the borrower is identical.
DSCR Formula
DSCR = Net Operating Income ÷ Annual Debt Service
Example: $120,000 NOI ÷ $96,000 debt = DSCR of 1.25
Typical Minimum
1.20 – 1.30
Most lenders require 20–30% more income than debt payments
Also Evaluated
- Lease quality and term remaining
- Tenant creditworthiness
- Property condition and location
- Borrower net worth and experience
Commercial Expertise
“Commercial deals are structured, not just approved. The lender, the terms, and the amortization all affect your returns, not just the rate.”
Jessy works with banks, credit unions, life companies, MICs, and CMHC programs, accessing the full spectrum of commercial lenders to find the structure that maximizes your deal's viability.
Lender Types
Navigating the Commercial Lending Landscape
Different lenders serve different commercial deals. Jessy knows which lender is right for your specific asset type, income profile, and timeline.
| Lender Type | Best For | Max LTV | Notes |
|---|---|---|---|
| Schedule A Banks | Strong financials, established businesses, owner-occupied | Up to 75% | Lowest rates, most stringent underwriting |
| Credit Unions | Local businesses, relationship lending, flexible structures | Up to 75% | More flexible than banks on non-standard files |
| Life Insurance Companies | Stable, long-term income-producing properties | Up to 70% | Competitive rates on high-quality assets |
| Mortgage Investment Corps (MICs) | Bridge financing, land, non-stabilized assets | Up to 65% | Higher rates, faster closings, flexible criteria |
| CMHC (Multi-Residential) | 5+ unit rental buildings | Up to 95% | Lowest rates in market, limited to eligible multi-unit |
FAQ
Commercial Mortgage FAQs
- What is DSCR and why does it matter for commercial mortgages?
- DSCR stands for Debt Service Coverage Ratio: the ratio of a property's net operating income (NOI) to its annual debt payments. A DSCR of 1.25 means the property generates 25% more income than its mortgage payments. Most commercial lenders require a minimum DSCR of 1.20–1.30. Unlike residential mortgages, commercial lenders focus heavily on the property's income-generating ability, not just the borrower's personal income.
- What's the minimum down payment for a commercial property?
- Commercial properties typically require 25–35% down, depending on the asset type, lender, and your financial profile. Owner-occupied commercial properties (where your business operates) may qualify for slightly lower down payments in some programs. Investment commercial properties without owner occupancy generally require at minimum 25% down, with higher requirements for land and development plays.
- Are commercial mortgage rates higher than residential?
- Generally, yes, commercial mortgages carry higher rates than insured residential mortgages due to the higher perceived risk, more complex underwriting, and shorter amortization periods. However, rates vary significantly by lender type and asset quality. A strong property with stable tenants, financed through a Schedule A bank, can secure rates close to residential investment rates. Jessy shops the full lender landscape to find the most competitive structure for your deal.
Let's Talk About Your Commercial Deal
Every commercial transaction is different. Book a call with Jessy to walk through your asset type, financing structure, and timeline. She'll identify the right lenders for your specific deal.
Commercial financing across Ottawa, Gatineau, and Eastern Ontario.