Commercial property financing when conventional lenders can't move.
Commercial mortgages, construction draws, land loans, and development bridge financing for Ontario properties and projects that fall outside bank underwriting criteria. Private capital moves faster and underwrites differently.
Products We Arrange
Commercial and development financing products
Private lenders serve a range of commercial scenarios. Here are the main product categories we work with.
Commercial Mortgages
Retail, office, industrial, and mixed-use properties. Private lenders can fund where banks decline due to occupancy, lease structure, or property type restrictions.
Construction Financing
Draw-based financing for residential and commercial construction projects. Covers land acquisition and construction costs with advances tied to project milestones.
Land Loans
Financing for vacant land, development sites, and properties with no or minimal improvements. A segment banks largely avoid due to lack of income-generating collateral.
Multi-Unit Residential
Apartment buildings, townhouse complexes, and multi-residential properties that fall outside conventional CMHC or bank underwriting programs.
Mixed-Use Properties
Properties combining residential and commercial uses — common in Ontario urban markets — that don't fit cleanly into residential or commercial bank lending boxes.
Short-Term Bridge (Commercial)
Bridge financing for commercial properties between acquisitions, refinances, or tenant transitions, where standard commercial lenders require stabilized occupancy.
Is This Right For You?
When private commercial financing makes sense
- Your property doesn't fit bank lending criteria due to type, location, or income profile
- Construction financing is needed but bank draw requirements exceed what your project timeline can accommodate
- You're acquiring vacant land for future development and need short-term land financing
- Your commercial property has vacancy or a lease-up period and conventional lenders require stabilized income
- You need to close quickly on an acquisition and bank timelines are too slow
- You're a developer or investor bridging between construction completion and long-term financing
Typical Terms Overview
Rates shown are indicative ranges for general information only. Your actual rate will depend on property type, location, loan-to-value ratio, borrower profile, and other underwriting factors. Rates are subject to change without notice.
The Process
How commercial private mortgage approval works
Commercial files require more due diligence than residential. Timelines are longer but still faster than institutional lenders in most cases.
Property and project review
We review the property type, location, intended use, existing income (if any), and your development or investment plan. Commercial files require more detailed information than residential.
Appraisal and due diligence
Commercial appraisals assess income, comparables, and market conditions. Construction and land files also require environmental reviews and development feasibility assessment.
Lender sourcing
Commercial private lending is a more specialized market. We identify lenders with specific experience in your property type and project structure, and present your file professionally.
Term sheet, commitment, and closing
Commercial commitments include more conditions than residential. Your legal team reviews the commitment carefully. Draw schedules for construction mortgages are defined at commitment.
What Lenders Assess
Key factors in commercial lending decisions
Property value and type
Commercial lending decisions are heavily driven by the property's current and projected value. Property type affects the lender pool — some lenders specialize in industrial while others focus on land or construction.
Loan-to-value (LTV)
Commercial private LTV limits are typically lower than residential. Expect 50–70% LTV depending on property type and location. Land is often limited to 50–60% of appraised value.
Project feasibility (construction/land)
For construction and development files, lenders review the project plan, permit status, contractor credentials, and projected cost-to-complete versus projected value. Incomplete or unrealistic pro formas weaken applications significantly.
Borrower experience
Commercial and construction lenders pay more attention to the borrower's track record than residential private lenders do. Experience with similar projects is a meaningful positive factor.
Exit strategy
Private commercial financing is always short-term. Lenders want a clear, credible plan for repayment — refinancing with a conventional commercial lender, sale, or project completion and take-out financing.
Common Questions
Commercial lending FAQ
What types of commercial properties can you finance?
We can work with a wide range of property types including retail, office, industrial, warehouse, multi-residential (5+ units), mixed-use, development land, and properties under construction. Each type has a specific lender pool. Hospitality, cannabis, and certain specialized properties have a narrower lender market.
How does construction draw financing work?
Construction financing is advanced in stages (draws) as the project reaches pre-agreed milestones — for example, foundation complete, framing complete, etc. Each draw is verified by an inspector or cost consultant. The interest is typically charged only on the amounts advanced, not the full commitment amount.
Can I get a land loan for a property without any development permits?
Yes, though the LTV will be lower and the lender pool smaller. Lenders distinguish between raw land, land with approved zoning, and land with active permits. The more advanced the entitlement process, the more financing options are available.
What are typical rates and fees for commercial private mortgages?
Commercial private rates typically range from 9% to 15% annually, with lender and broker fees on top. Construction and land financing tends to be at the higher end of this range. The complexity of commercial deals means legal and due diligence costs are also higher than residential transactions.
Do I need a separate real estate lawyer for commercial transactions?
A lawyer with commercial real estate experience is strongly recommended. Commercial mortgages involve title review, lease assignments, environmental representations, and other complexities not present in residential transactions. Your broker can recommend commercial real estate lawyers if needed.
Discuss your commercial financing need.
Commercial files are assessed individually. Tell us about your property, project, and timeline and we'll evaluate what private lending options are realistic.