🏢 Commercial Mortgage Categories in Canada

 For businesses purchasing property they will occupy and operate from.

• Typically includes office space, retail storefronts, warehouses, or mixed-use buildings
   
• Qualification often depends on the business's financial health and cash flow
   
• May allow higher loan-to-value (LTV) compared to investment properties

 For investors purchasing income-generating properties.

• Includes multi-unit residential (5+ units), retail plazas, industrial complexes, and office buildings
   
• Approval focuses on property cash flow (Debt Service Coverage Ratio - DSCR) and borrower experience
   
• Usually requires 25%–35% down payment
   

 Used to finance ground-up developments or major renovations.

• Often structured in draws tied to project milestones
   
• Requires detailed plans, appraisals, and budgets
   
• Commonly short-term (12–36 months) with interest-only payments during construction

 Short-term financing used until long-term funding is secured.

• Ideal for property repositioning, quick acquisitions, or time-sensitive deals
   
• Higher rates, but fast funding and flexible terms
   
• Typically interest-only with balloon payment at end

 For residential buildings with 5+ units, eligible for CMHC insurance.

• Lower interest rates and longer amortizations (up to 40 years)
   
• Strict guidelines on property condition, affordability, and borrower qualifications
   
• Appeals to long-term real estate investors

 Offered by private lenders for unique, higher-risk situations.

• Useful for borrowers who don't qualify at traditional banks
   
• Faster approvals with flexible terms
   
• Higher interest rates and fees