Commercial Real Estate Loan
Own the premises you operate
A commercial real estate loan lets your business buy, refinance or build the property it operates from instead of paying rent to someone else. We arrange the financing as part of your business's overall banking, so the loan fits alongside your operating line and term debt rather than competing with them.
- Owner-occupied retail, office and industrial
- Purchase, refinance and construction
- Up to 25-year amortization
- Structured with your other business credit
Business property financing
Lenders underwrite an owner-occupied property on the strength of the business that will pay for it: cash flow, years of statements and the owners' covenant. That is different from an investment property, which is underwritten on its rental income. If you are buying an income property or a multi-unit building as an investor, our Commercial Mortgages service is the right page.
- Buying the unit, plaza, warehouse or office your business already rents
- Refinancing to release equity for growth or to consolidate debt
- Construction and fit-out of purpose-built premises
- Multi-unit buildings where the business occupies part and rents the rest
How the loan is structured
Banks, credit unions and specialised lenders typically finance 65 to 80 percent of the appraised value on an owner-occupied property, amortized over 15 to 25 years. Government-backed routes, including the Canada Small Business Financing Program and BDC, can raise the loan-to-value for smaller purchases. The remainder comes from equity, vendor financing or a second facility, which we arrange when needed.
What to prepare
Two to three years of business financial statements, a purchase agreement or refinance target, an appraisal if one exists, environmental reports for industrial sites, and corporate documents. Our legal services team handles the transaction and the lender's security.
FAQ
Common questions
How much down payment does a commercial real estate loan need?
Typically 20 to 35 percent of the purchase price for an owner-occupied property. Government-backed routes can reduce that for smaller purchases.
Should the property be owned by the business or a holding company?
Many owners hold the property in a separate company and lease it to the operating business. Our business law team explains the trade-offs before you sign the offer.
How long does it take?
Six to ten weeks is typical from accepted offer to funding, driven by appraisal, environmental review and lender due diligence.
Get started
Tell us about your situation
Share a few details and an advisor will follow up within one business day with next steps and the documents to prepare.
Your first call is free
Tell us what you need and we will tell you exactly what it takes. No pressure, no obligation.