The perfect mortgage for
acquiring business property

  • Save over $10,000
  • No credit check
  • 95% client success

Today's lowest
5-year mortgage rates


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Commercial Mortgage

At Lower we offer competitive rates and terms for Canadian businesses looking to invest in property. Whether you’re looking to buy property to help your business run or looking to invest in a profit-generating investment asset, we’ve got the financing you need.

  • Get pre-approved so you can buy with confidence
  • Access competitive rates not available at the bank
  • Work with professionals who match your timeline

The right source for
Canadian mortgages

Lower is Canada’s premium mortgage broker offering mortgages for every type of new home, whether it's to work from or an investment.

  • See the lowest rates

    See the lowest rates

    We’ll check 40+ lenders and 10,000 products in the market.

  • Get expert advice

    Get expert advice

    Speak with your trusted Lower advisors anytime.

  • We do the hard work

    We do the hard work

    Lower advisors will do all the application admin.

Canadians love

Rated 4.9 / 5 on Google, Facebook, Trustpilot, Comparewise and others.

  • Brian Molnar
    Brian Molnar


    Buying a home for your family is so important. Ammar made us feel comfortable with at ease with this process. He took his time to understand our needs but was very quick with the process.

  • Karen Austin
    Karen Austin


    I bought my first home a few years back and used @lowerdotca. It was a great experience so I called them when I was ready to purchase my second house. Ammar and his team go above and beyond.

  • Valerie Fincher
    Valerie Fincher


    We had a great experience with Ammar and his team. He explained us all of our options without us feeling the pressure or rushed. I highly recommend.

  • Jeff Mahlum
    Jeff Mahlum


    I was extremely nervous being a first time home buyer in Toronto. With prices skyrocketing I wasn't sure this was the right move but after speaking to Ammar, he made me feel confident.

  • Clementine Mason
    Clementine Mason


    Ammar went above and beyond our expectations, answering all of our questions and securing us an even better rate that we'd hoped for! The entire process was very smooth and we will be recommending his mortgage services.

  • Averi Blackwell
    Averi Blackwell


    I was working with a broker before and it was a nightmare. Thank goodness I found Ammar. He was always quick to respond to help us. We will definitely be using Ammar when it’s time to renew our home.

  • Melissa Dodds
    Melissa Dodds


    I was anxious being a first-time home buyer in the Toronto market. Ammar was referred to me by a friend of the family and he definitely made the process much easier to work through!

  • John Hartman
    John Hartman


    We really appreciated Damien’s patience and compassion through this entire process. We are very happy with our rate and how easy he made our experience.

  • Ruben Gonzalez
    Ruben Gonzalez


    Ammar was amazing to work with from start to finish. Found us such an excellent rate. He went above and beyond for us.

  • Nicola Weber
    Nicola Weber


    @lowerdotca helped me with my purchase of my third business property. He found us the best rates. I would recommend Shawn if you need to speak to anyone.

  • Brooke Cheng
    Brooke Cheng


    My family member recommend @lowerdotca and to speak to Ammar. He doesn't disappoint. I was very satisfied with his service.

  • Fredy Pollich
    Fredy Pollich


    My previous mortgage broker retired so I had to find a new one. When I contacted Lower. The whole team is amazing. I was impressed right off the bat. Very professional.

  • Tricia Seward
    Tricia Seward


    @lowerdotca was recommended to me by a fellow business owner who used their services to refinance their property. I found Ammar to be knowledgeable and efficient in helping us to reduce our rate and liquidate the capital we needed to expand our business.

  • Judson Flatley
    Judson Flatley


    So glad I found Damien and Lower. The last time I had to renew my mortgage was a headache. Damine is familar with the challenges of applying as a self-employed individual and got our re-financing done without any trouble.

  • Josephine R
    Josephine R


    Lower gave us confidence in our purchase. I won’t even hesitate calling because they are just that great! Very easy to understand and work with.

  • Albert Taylor
    Albert Taylor


    I've worked with Lower many times. I highly recommend them to my clients who are in need. They work hard to get the best rates.

  • William Westley
    William Westley


    I was referred to Damien because I wanted to purchase the building my business is in when my landlord decided to sell. We went over all of my options and I ended up not only managing to purchase the building but also get extra funds to

  • Javier Garcia
    Javier Garcia


    Very reliable team. They are straight forward which I liked. They are honest but they also work very hard to find the best rates for you.

  • Michele Peers
    Michele Peers


    I had the pleasure of speaking to Shawn about a few things. Including purchasing property for my business and we got approved very quick. I will be using his services for my business in the future.

  • Donal Lynch
    Donal Lynch


    I used @lowerdotca to help with the purchase of my second investment property. Damien made the process quick and straightforward, which I appreciated as I have a hectic schedule.

FAQs about Commercial Mortgages

Have a different question? Contact us today.

Can I get a residential mortgage on a commercial property?

The most straightforward answer is yes, but on the condition that the property was bought for investment. Examples are:

  • Pure residential, 1-4 units
  • Pure residential, five or more units
  • Residential Commercial Mixed.

What are commercial mortgage rates?

Canada's average commercial mortgage rate is between 4.5% and 8.3%. If you’d like to calculate the estimated rate but find it complex, simply use a commercial mortgage calculator. However, note that the rate you will get depends on the loan term and your choice of either a fixed-rate or variable rate on your mortgage.

What is a commercial mortgage?

It is a loan secured to finance a property you do not own or to free an existing building from a value invested in the business.

How do commercial mortgages work?

Most banks and financial institutions offer a this type of mortgage, but there are no set rates. That means lenders review every application thoroughly, based on the requirements and strength of your documents. However, you can use a commercial mortgage calculator to forecast how much you could qualify for. Additionally, a business mortgage will averagely last from 3 to 25 years. Therefore, you might need to consider a bridging or development loan if you want a shorter-term loan.

Are mortgage rates higher for businesses than residential?

Yes. A business mortgage rate is slightly higher than a residential one - typically between 0.25% and 0.75% higher. It requires a height of specialization and bears more risk for the lender if the borrowers breach.

Investors and entrepreneurs seeking to finance commercial properties with loans often opt for a commercial mortgage. Business mortgage terms are similar to that of residential mortgages. However, your business needs dictate the options you may have.

A commercial mortgage is a loan to finance properties like office buildings, retail spaces, hotels, companies, etc. A business mortgage application requires profit/loss statements, tax returns, rent rolls, and other finance-profile documents. The rates are usually higher because it is riskier for lenders. Top Canadian platforms offering commercial mortgage services include Lower, Tangerine, and CIBC.

There’s no shortage of ways to raise money for your start-up. But getting this type of mortgage is one way to go. So how do you get started? That’s why we’ve put together this guide to help you understand how this financing option works.

commercial mortgage - source mortgages

What You Need to Know About a Commercial Mortgage

Each case of a commercial mortgage varies. However, information about the dynamics could help you make informed choices.

Types of Properties

You can seek a mortgage for different types of commercial properties. The common types are:

  • Mixed (Residential commercial)
  • Commercial plaza mortgage
  • Multi-family residential of multiple units
  • Office, industrial and farmland mortgages
  • Construction projects.

Expected Time Frame

Unlike residential mortgages that could close within fourteen to ninety days, commercial mortgages take anywhere from sixty days to complete.

Types of Commercial Mortgages

There are different types of commercial mortgages, and each varies in terms of the loan-to-value ratio of the property type.

Commercial Mortgage Versus Residential Mortgage

Though similar, these two mortgages have several differences, which you should be aware of before applying for either.


Qualifying for a residential mortgage is mainly based on your income, credit score, and outstanding debts.

Application Procedure

In the mortgage industry, there are fewer regulations on commercial properties. Hence, many business property mortgage lenders require less paperwork to underwrite the contract.

Down Payments

A higher down payment is required for most commercial mortgages than residential mortgages.

Interest Rates

Commercial properties can be significantly riskier for the lender despite their potentially high value, so it attracts higher rates.

Closing Times

A commercial mortgage takes about six weeks to 1 year to close. In comparison, some residential mortgages can be completed in as little as four weeks (although up to 90 days isn’t uncommon).  

Processing Costs

The processing cost of residential mortgages is considerably lower than business property mortgages because they require more time and documentation. You may also require the services of a mortgage broker or an attorney.

Appraisal cost

Residential appraisals are relatively cheaper and more straightforward in scope than commercial appraisals. A property’s size, type, and location may affect appraisal costs.

business mortgage - source mortgages

Mortgage Application Criteria

Seeking a commercial property mortgage requires you to satisfy some criteria. They (but are not limited to) are:

Debt-Service-Coverage Ratio

This is fundamental to the lenders’ assessment. It is the ratio of the available cash to the actual loan amount.

Credit History

Lenders will assess your credit score history to judge your creditworthiness. Although, few lenders may accept applicants with poor credit histories.

Current Business Situation

Lenders use the current situation of the business to judge the profitability or otherwise of the business. For example, some lenders may consider $100 to $200K the least for the business’s net worth. Therefore, the expected fund should not be in equity but liquid.

Type of Business

The property you want to finance and the type of business affect the terms of a business property mortgage. That area is somewhat complex, so it is recommended to seek the opinion of a mortgage specialist.

Down Payment

The initial payment expected for a commercial property mortgage is relatively higher, typically between 20%-35%. A pure business property generally is more than 50%. Your risk profile determines the down payment for you.

Where to Get a Commercial Mortgage in Canada

There three primary lenders for this type of mortgage are brokers, banks, and other financial institutions that provide business property loans. Some viable options to explore are:


Lower is one of Canada’s top mortgage providers. They mediate between borrowers and lenders for new mortgages, refinancing, and renewing mortgages. But its extensive experience and advice regarding commercial mortgages in Canada are not all Lower offers.

They also provide home loans, home equity loans, and mortgage refinancing options. And they even offer their clients debt consolidation solutions. But when it comes to businesses, this brokerage is equipped to assist with several commercial loan options, to suit their needs.

Final Words on Commercial Mortgages

There are many reasons borrowers apply for a commercial mortgage, such as property development, a new business office, etc.

Fortunately, a bank, financial institution, or commercial mortgage broker can finance the loan if the criteria are met. However, there are different types of properties with varying rates, so consult with an advisor before setting with one.