Commercial Mortgage in Courtenay, BC

commercial mortgage in Courtenay 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 $1,600,000 average Courtenay transaction, a 70% advance is $1,120,000, carrying $78,961 of annual debt service on a 25-year amortization and a 5-year term.

Coverage binds before leverage here. At a mid-band 5.8% cap rate the asset throws off roughly $92,800 of NOI, which supports $1,053,037 at the 1.25x floor — about $66,963 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.

Courtenay scores 100 on the Capitalor Lender Density Score — a deep market, with 4 tracked lenders and brokers against 800 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 $1,120,000 loan constant, coverage falls to the 1.25x floor at roughly 4.44% — 0.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Courtenay deal survives renewal.