Commercial Mortgage in Richmond Hill, ON

commercial mortgage in Richmond Hill 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 $4,700,000 average Richmond Hill transaction, a 70% advance is $3,290,000, carrying $231,948 of annual debt service on a 25-year amortization and a 5-year term.

Coverage binds before leverage here. At a mid-band 5.3% cap rate the asset throws off roughly $249,100 of NOI, which supports $2,826,634 at the 1.25x floor — about $463,366 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.

Richmond Hill scores 100 on the Capitalor Lender Density Score — a deep market, with 17 tracked lenders and brokers against 4,400 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 $3,290,000 loan constant, coverage falls to the 1.25x floor at roughly 3.58% — 0.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Richmond Hill deal survives renewal.