Commercial Mortgages

Minimum Loan Amount

New and renewal mortgages will be advanced to a maximum loan to value ratio of 75% of the lesser of the income value or the market value of the property as determined by Equitable Life.
On an exception basis a second mortgage may be considered.
Unless CMHC insured, the Debt Service Cover Ratio (DSCR) must not be less than:
- Multi-Family Residential - 115%
- Industrial - 120%
- Office - 120%

The Company may issue a mortgage on the following property types:

Multi-Family Residential - apartments or townhouse complexes
Industrial buildings containing a combination of office and warehouse space and having a minimum warehouse ceiling height of 18ft., either single tenanted or multi-tenanted.
Office buildings
Retail plazas and buildings with a satisfactory anchor tenant (e.g. banks, food stores, LCBO) and that satisfy specific underwriting standards on location.

Commercial Lending Rates will be quoted on a spread over equivalent term Canada Bonds and will be determined by the risk assessment as determined by Equitable Life of Canada.
Contact a Lending Account Manager for a current Commercial Lending rate quote. Third Party Report
Appraisal Reports are required for all new mortgages, excluding those that are CMHC insured, unless required by CMHC as a condition of the certificate. The appraiser selected must be on Equitable Life's "Approved Appraiser List."
Equitable Life's Environmental Questionnaire plus a Phase I environmental audit must be completed by the borrower and included with each new or renewal application.
Phase II audits are mandatory where the Equitable Life's Environmental Questionnaire or the Phase I audit indicates further investigation or remediation action is required if the application is to proceed.
Phase III environmental audits are mandatory where the Phase II audit indicates further investigation or remediation action is required if the application is to proceed.
A Building Condition Audit Report, completed by a qualified and approved Engineering firm, will be required on all properties considered for new financing or as stipulated in the CMHC Certificate of Insurance.