Commercial Mortgage in Stratford, ON

commercial mortgage in Stratford 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 $1,300,000 average Stratford transaction, a 70% advance is $910,000, carrying $64,156 of annual debt service on a 25-year amortization and a 5-year term.

Leverage binds before coverage here. The wide 6.8% cap rate produces roughly $88,400 of NOI, enough for $1,003,109 at a 1.25x floor — about $93,109 above what the 70% LTV cap will advance. The deal is sized by value, so the appraisal, not the rent roll, is the document to get right first.

Stratford scores 100 on the Capitalor Lender Density Score — a deep market, with 4 tracked lenders and brokers against 900 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 $910,000 loan constant, coverage falls to the 1.25x floor at roughly 6.05% — 1.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Stratford deal survives renewal.