Commercial mortgages
Commercial mortgage calculator
Estimate payments on a Canadian commercial mortgage. Interest is compounded semi-annually, not in advance — the standard Canadian convention — so the numbers line up with how lenders quote.
How commercial mortgage payments are calculated in Canada
Canadian mortgages are typically compounded semi-annually rather than monthly. The nominal rate is converted to an effective annual rate, then to a per-payment rate, and amortized over the full repayment period. Because the term is usually shorter than the amortization, a balance remains at term end that must be renewed, refinanced, or repaid.
What lenders look at beyond the payment
- Debt service coverage ratio (net operating income vs. debt payments)
- Loan-to-value against an appraised, income-based valuation
- Property type, tenancy, lease terms, and vacancy
- Borrower covenant, experience, and financial history
- Environmental and structural reporting requirements
This calculator provides estimates for planning purposes only. Actual payments depend on lender terms, fees, rate type, payment structure, and approval. Financing is subject to lender criteria, credit review, property evaluation, and approval. Information on this website is general in nature and does not constitute financial or legal advice.