Minimum loan amount
Loan to value
- 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
- Multi-family residential - apartments or townhouse
- 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.
- In most cases a term sheet can be issued within a 48 hour