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Commercial Mortgage Calculator BC: Payment and Maximum Loan
Quick answer: A commercial lender lends the lower of two amounts: a share of the property's value, often 65% to 75%, and the loan its net operating income can carry at a debt service coverage ratio of about 1.20 to 1.30. Enter the price, income and terms below to see the payment, the largest loan, and which limit applies.
Commercial mortgage calculator
Enter the property, its net operating income and the terms. Lenders lend the lower of two amounts: a share of the value (loan to value) and what the income can carry (debt service coverage).
Largest loan the numbers support
$1,448,597
Debt coverage is the limit here: the income supports less than the loan to value allows. More down payment, a longer amortization or higher rents would raise it. Rate is your quote, not an offer.
How do lenders size a commercial mortgage?
| Test | What it measures | Typical limit |
|---|---|---|
| Loan to value (LTV) | Loan ÷ appraised value | 65% to 75% conventional; up to 85% or more CMHC insured multi unit |
| Debt service coverage (DSCR) | Net operating income ÷ yearly mortgage payments | 1.20 to 1.30 at banks; 1.10 on some insured and B lender loans |
| Amortization | Years to repay in full | 20 to 25 years; longer on insured rental buildings |
| Term | How long the rate is set | 1 to 10 years |
Learn the inputs in the DSCR guide and the cap rate and NOI calculator, and how pricing works in how commercial mortgage rates are set.
Worked example: a $2.5 million Surrey industrial building
A building priced at $2,500,000 with $140,000 of net operating income. At 65% loan to value the lender would lend $1,625,000. At a 6% rate over 25 years and a 1.25 DSCR, the income supports about $1,449,000. The lender offers the lower figure, so the buyer needs about $1,051,000 down, not $875,000. Raising the income, choosing a longer amortization or an insured multi unit program changes the answer.
What else goes into a commercial approval?
- The property: type, location, leases, tenant quality and condition. Special use properties carry lower loan to value.
- The borrower: net worth, liquidity, credit and experience owning similar property, usually with a personal guarantee.
- Third party reports: an appraisal and, for most properties, a Phase 1 environmental site assessment. See Phase 1, appraisal and closing costs.
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Frequently asked questions
How is a commercial mortgage calculated?
The lender works out two numbers and lends the lower: a share of the property's value (loan to value, often 65% to 75%) and the loan the property's net operating income can carry at a minimum debt service coverage ratio, usually 1.20 to 1.30. The payment is then amortized, typically over 20 to 25 years.
What is a typical amortization on a commercial mortgage in Canada?
Usually 20 to 25 years for office, retail and industrial property. Rental buildings can go longer, and CMHC insured multi unit loans can reach 40 or 50 years under MLI Select.
How much down payment does a commercial property need?
Usually 25% to 35% of the price on a conventional commercial mortgage, more for special use properties such as gas stations or hotels. Owner occupied businesses can sometimes borrow more through development bank or CSBFP financing.
Is the commercial mortgage term the same as the amortization?
No. The term is how long the rate and conditions last, commonly 1 to 10 years. The amortization is how long it would take to repay the loan in full at that payment. At the end of the term you renew or refinance.
Do commercial mortgages use the stress test?
Not the residential stress test. Commercial lenders test the property's income instead, through the debt service coverage ratio, sometimes at a rate above the contract rate.
Want a lender's view of your numbers? Book an appointment with Asim Ali, ranked #4 in the CMP Top 75 Mortgage Brokers in Canada for 2026, or call 604‑591‑3590.