Your visual guide
How a commercial mortgage gets assessed
Commercial financing starts with property cash flow, then tests the exit, leverage and borrower strength.
Property
Understand the asset
Use, location, condition, leases and risks.
Pause before the next stage if a requirement is unresolved.
Details vary by borrower, property, program and lender. This visual organizes the conversation; it does not determine eligibility.
How the decision works
How commercial lenders read the deal
- 01
Debt coverage
Does dependable property income support the debt?
- 02
Exit strategy
How is the balance repaid or refinanced?
- 03
LTV / CLTV
How much leverage sits against supported value?
- 04
Borrower story
What do sponsor experience, liquidity and guarantees add?
Evidence stack
Build the commercial evidence room
Decision path
Match the financing to the asset stage
Path 1
Stabilized term loan
Income and occupancy support longer-term financing.
Stop gates
Resolve these before relying on the plan
These visuals organize questions for your professional team. They are not an approval, legal opinion or personalized recommendation.
Detailed guide
What Is a Commercial Mortgage?
A commercial mortgage is a loan secured by commercial or income-producing real estate rather than a primary residence. In British Columbia, commercial mortgages cover everything from strip malls and office buildings to multi-family apartment complexes, industrial warehouses, and mixed-use properties.
Unlike residential mortgages, commercial deals are evaluated primarily on the property’s ability to generate income rather than the borrower’s personal income. This means lenders focus on metrics like Net Operating Income (NOI), Debt Service Coverage Ratio (DSCR), and capitalization rates.
How Commercial Differs from Residential
The biggest difference is qualification criteria. Residential lenders use your personal Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. Commercial lenders care about the DSCR — whether the property’s income covers the debt payments by at least 1.2x.
Commercial pricing, term length, amortization, and required equity depend on the asset, cash flow, location, leverage, borrower strength, and lender appetite.
- DSCR (Debt Service Coverage Ratio): NOI divided by annual debt payments. The required threshold varies by lender, property, and program.
- Cap Rate: NOI divided by property value. Helps determine whether the purchase price is fair.
- NOI (Net Operating Income): Total income minus operating expenses, excluding mortgage payments.
- LTV (Loan-to-Value): The maximum varies with the lender, asset, cash flow, and risk profile.
Types of Commercial Properties We Finance
E7 Mortgages can assess a range of commercial real estate scenarios in BC, including retail, office, industrial, mixed-use, multi-family, construction, and development land.
We also arrange business acquisition loans, inventory financing, and equipment loans for operating companies looking to expand.
Why Use a Mortgage Broker for Commercial Deals?
Commercial lending is fragmented across dozens of lenders — banks, credit unions, private lenders, pension funds, and specialty finance companies. Each has different appetites for property types, geographies, and risk profiles. A broker like E7 Mortgages knows which lenders are active, what terms they offer, and how to package your deal for the best outcome.
We prepare the financial package, help coordinate required third-party reports, and approach lenders whose current appetite fits the asset and deal structure.
Get Started
If you have a commercial deal in BC, contact E7 Mortgages for a consultation. We can review the scenario, outline plausible financing routes, and identify evidence gaps; final terms and approval remain subject to lender review. Call (778) 834-9618 or WhatsApp us.