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Commercial mortgage payment

Estimate the payment and debt service on a commercial loan with Canadian semi-annual compounding. Then talk to us about structure.

Your numbers

Amortization up to 50 years, with Canadian semi-annual compounding.

Shows the balloon balance owing at term end.
Estimated payment
$0 / month
Loan amount$0
Total interest over amortization$0
Annual debt service$0
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For illustration only and not an offer of financing or a rate quote. Commercial mortgages often use shorter terms with a balloon, interest-only periods, or different compounding. Pricing depends on the property, the asset class, and lender review. Estimates use Canadian semi-annual compounding and assume a fixed rate held for the full amortization shown. Speak with us for figures specific to you. TMG HarbourTown Mortgage Inc., Licence #3000145.

What these numbers mean

Plain-language definitions and the typical ranges, so you can play with the inputs with confidence.

Loan amount
The principal you are borrowing against the property. On commercial deals this is usually the lower of what the income supports (DSCR) and the lender's loan-to-value cap.
Typical: conventional commercial LTV often up to 75 percent of value; CMHC programs can go higher.
Interest rate
The annual rate used to price the loan. Commercial pricing is set by the property, asset class, and lender review, so it is not a posted consumer rate.
Typical: commercial rates sit above comparable residential and move with bond yields and the asset's risk.
Amortization
The number of years used to spread the payment to zero. A longer amortization lowers each payment but increases total interest. This tool uses Canadian semi-annual compounding, the convention for Canadian mortgages.
Typical: conventional commercial amortization runs up to 25 to 40 years; CMHC and MLI Select can run longer.
Term (optional)
The length of the contract before renewal or payoff, usually much shorter than the amortization. At term end a balance is still owing, the balloon, which you renew, refinance, or repay.
Typical: commercial terms often run 1 to 10 years, with 5 years common; the payment is set by the amortization, not the term.
Monthly payment and annual debt service
The estimated payment per month, and that figure times twelve. Annual debt service is the number lenders compare against NOI to test DSCR.
Typical: lenders want NOI to clear annual debt service by a cushion, often 1.20 to 1.30 conventional, around 1.10 under MLI Select.
Balloon balance at term end
The principal still owing when the term ends, because the amortization is longer than the term. Plan for how you will refinance or repay it before the term runs out.
Typical: the shorter the term relative to amortization, the larger the balloon left to refinance.
These are general ranges, not your numbers. The right figure depends on your situation, the property, and the lender. Talk to us and we will pin it down.

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