A private commercial mortgage is a short-term loan, usually 6-24 months, secured on a business or investment property: mixed-use buildings, retail, office, industrial, small apartment buildings or development land. It makes sense when a bank is too slow, the property needs work or leasing before a bank will lend, or your business finances are messy for a year. Most private and institutional lenders stop at about 65-75% of value, and price each deal separately. The exit is a bank or institutional mortgage once the property or the numbers are stabilised.

Which commercial properties do private lenders finance?

Shops below, homes above

The most common private commercial file. Lenders look at the rents on both parts, vacancies and the building's condition. A vacant storefront is a typical reason a bank waits and a private lender doesn't.

Check my options

Five units and up

Buildings over four units are commercial mortgages. Private lenders help when rents are below market, units need renovation, or you need to close before CMHC multi-unit financing is ready.

Check my options

Warehouses, shops and plazas

Lenders want leases, tenant quality and the time left on each lease. An owner-occupied building is judged on your business too. Specialised buildings get lower limits.

Check my options

The riskiest for lenders

Land with zoning, permits or servicing still ahead. Limits are lower, and lenders want a realistic budget and timeline. Land loans.

Check my options

When is a private commercial mortgage the right tool?

You need to close fast. A seller wants a firm deal in two or three weeks and the bank needs two months.
The building isn't "bankable" yet. Empty units, below-market leases or repairs. Private money funds the fix; the bank refinances the result.
Your business had a bad year. A lender that looks at the property more than your financial statements can bridge until the next year end.
A maturity is coming and the bank won't renew. A short private loan buys time to refinance or sell properly.

It is the wrong tool when the plan depends on values rising, or when there is no realistic lender to refinance with at the end. We say so before you pay any fees.

Handshake across a desk over signed documents in a folder — Commercial deals are priced one at a time. You see the rate, every fee and the exit plan in writing before you commit.

What do commercial lenders look at?

Value and loan-to-value

A commercial appraisal, often the biggest up-front cost. Most private lenders stop at about 65-75% of value on a first mortgage.

Rents and debt coverage

Rent roll, leases and expenses. Institutional lenders publish coverage minimums, such as 1.20 times the payment on a first mortgage.

Condition and environment

Building condition and, for industrial or older retail sites, an environmental report.

The exit

Which lender refinances you, at what rents, and by when. This decides whether a private loan makes sense at all.

Example of a published institutional benchmark: MCAP's conventional commercial term mortgages go to 75% loan-to-value on a first mortgage and 85% combined with a second, for loans of $5 million and up. Private lenders rarely publish terms; they quote each deal.

Are commercial mortgages regulated like home mortgages?

Partly. Brokers still need a licence to arrange commercial mortgages in BC, Alberta and Ontario. But some consumer protections do not apply to business borrowing. In BC, the cost-of-credit disclosure rules cover consumers, and a loan you sign as "primarily for business purposes" falls outside them. Ontario's cost-of-borrowing rules also exclude borrowers who are not individuals or who borrow for business purposes. We give you the full cost in writing anyway.

How does a private commercial mortgage work through us?

Send the deal

Property, price or value, rent roll, the amount and the deadline.

Lender match

We take it to lenders that do your property type and size.

Term sheet

Rate, fees, conditions and the exit, in writing.

Appraisal, legal, funding

Commercial appraisal and lawyers, then funds.

Check my options Call (604) 591-3590

Private commercial mortgage questions

Is a five-unit building a residential or commercial mortgage?

Commercial. Buildings with one to four units are treated as residential; five or more are commercial, with different lenders, appraisals and rules.

Can I get a private second mortgage on a commercial property?

Sometimes, if the first mortgage allows it and there is enough equity. Many commercial first mortgages restrict further charges, so we read your mortgage terms first.

Can my corporation be the borrower?

Yes. Most commercial mortgages are to a corporation, and lenders usually want a personal guarantee from the owners.

How much does a commercial appraisal cost?

More than a home appraisal, and it depends on the property's size and type. We tell you the quote before you order it.

Sources. MCAP Commercial, conventional term mortgage · Atrium MIC commercial lending · Firm Capital lending programs · BC Business Practices and Consumer Protection Act, Part 5 · Ontario Reg. 191/08. Checked 5 November 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.