Commercial Mortgage in Cambridge, ON

commercial mortgage in Cambridge prices off the Government of Canada 5-year benchmark bond yield plus a 190 bps commercial mortgage spread, landing at 5.05% indicative. Conventional term debt on stabilized income-producing commercial property. On the $2,800,000 average Cambridge transaction, a 70% advance is $1,960,000, carrying $138,182 of annual debt service on a 25-year amortization and a 5-year term.

Coverage binds before leverage here. At a mid-band 6.0% cap rate the asset throws off roughly $168,000 of NOI, which supports $1,906,361 at the 1.25x floor — about $53,639 below the 70% LTV ceiling. Underwrite to the coverage number and treat the LTV cap as a secondary test, or bring the gap in equity.

Cambridge scores 100 on the Capitalor Lender Density Score — a deep market, with 12 tracked lenders and brokers against 3,500 commercial buildings. Expect competitive tension on well-covenanted paper: quote at least three lenders before accepting a spread.

Stress the file before a lender does. Holding the $1,960,000 loan constant, coverage falls to the 1.25x floor at roughly 4.77% — 0.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Cambridge deal survives renewal.