Buying property for your business — a clinic, an office, or a retail plaza — takes a different kind of mortgage. I’m Kia Pakravan, a licensed Ontario mortgage broker (FSRA licence #13380), and I help business owners across Ontario secure commercial mortgages with clear terms, realistic timelines, and access to lenders who understand commercial deals.
What Is a Commercial Mortgage?
A commercial mortgage is a loan secured by property used for business purposes rather than as a home. The biggest difference from a residential mortgage is how lenders qualify you: instead of focusing mainly on your personal income, commercial lenders look at the property’s income potential and your business finances — revenue, cash flow, and the down payment you’re bringing.
Commercial mortgages typically come with larger down payments (often 20% or more), shorter loan terms (commonly one to five years), and amortizations of up to 25 years. Rates are generally higher than residential mortgages, reflecting the different risk profile.
Who Uses Commercial Mortgages in Ontario?
Owner-operators across many industries use commercial mortgages to buy the space their business runs in:
- Medical, dental, and veterinary clinics purchasing their own premises
- Spa and med-spa clinics
- Retail plazas and strip malls
- Office buildings and professional offices
- Mixed-use properties combining retail and residential units
- Investors acquiring income-producing commercial property
Buying instead of leasing means building equity in an asset, controlling your occupancy costs, and gaining stability — no landlord deciding not to renew.
Example: How a Clinic Purchase Can Work
The following is an illustrative example, not a real client file.
Consider a diagnostic imaging clinic in the GTA that has leased space for eight years. The owners find a 3,000 sq. ft. commercial unit for sale nearby and decide to buy rather than sign another five-year lease.
With a 25% down payment, a commercial mortgage covers the rest. Their monthly payments are comparable to what they paid in rent — except now every payment builds equity in a property they own. Because commercial terms are commonly one to five years, the financing is reviewed regularly, giving the owners a chance to adjust as the practice grows.
Fitting out the space is a separate cost, from leasehold improvements to equipment. Ontario suppliers such as CoreView Imaging provide X-ray and digital radiography systems to medical and veterinary facilities across Canada — the kind of capital investment clinics often finance alongside the property itself.
Commercial vs. Residential Mortgages at a Glance
| Residential | Commercial | |
|---|---|---|
| Qualification based on | Personal income and credit | Business revenue, cash flow, and property income |
| Typical down payment | 5–20% | Often 20% or more |
| Common term lengths | 1–10 years | Commonly 1–5 years |
| Amortization | Up to 25–30 years | Up to 25 years |
| Rates | Lower | Generally higher |
How the Process Works
- Free consultation — we discuss the property, your business, and what you’re trying to achieve.
- Financial review — business financials, the property details, and your down payment.
- Lender matching — I approach commercial lenders, and private lending options where they fit, to find competitive terms.
- Approval and closing — clear paperwork, realistic timelines, and support through funding.
Commercial Mortgage FAQs
What down payment do I need for a commercial mortgage in Ontario?
Most commercial lenders look for 20% or more, though the exact figure depends on the property type, its income, and your business financials. Strong cash flow and a quality property can improve your options.
I’m buying my first commercial property. Can I still qualify?
Yes. First-time commercial buyers qualify regularly. Lenders weigh the property’s income potential and your business plan alongside your financial history — and I help you present the file the way commercial underwriters want to see it.
How long does a commercial mortgage approval take?
Straightforward files can move in a few weeks; more complex properties take longer. Starting the conversation before you make an offer puts you in the strongest position.
Can private lenders fund commercial deals?
Yes — private lending isn’t only for residential properties. For time-sensitive purchases or properties that don’t fit bank guidelines, private commercial lenders can be the right bridge. I work with both.
What kinds of properties qualify?
Clinics, offices, retail plazas, mixed-use buildings, and most income-producing commercial properties across Ontario.
Get a Free Commercial Mortgage Consultation
Buying space for your business is a major decision — the financing should be clear from day one. Call (416) 716-9696 or book your free commercial mortgage consultation to talk through your options.