What rate does construction financing carry today?

The Capitalor Commercial Debt Rate Index shows 6.90% indicative, a 375 bps spread over the GoC 5-year benchmark.

What does construction financing cost to service per $1M borrowed?

$84,050 a year at 6.90% over an interest-only structure priced against a 25-year equivalent. That is servicing cost only — premiums, fees, and prepayment terms sit outside it.

How much equity will a lender expect?

At 65% LTV the sponsor funds the remaining 35% plus closing costs.

Which coverage ratio clears credit?

1.00x is the floor in the Capitalor DSCR Stress Band for this product. Below it, proceeds are cut until coverage clears rather than the file being repriced.

In how many Canadian markets does Capitalor publish construction financing data?

134. Tier 1 products publish only in markets deep enough to support them, so the count is deliberately short of all 66 tracked markets.

01Size the deal

Construction Financing in Canada

Name: Capitalor Construction Financing benchmarks
Creator: Capitalor Data Desk
License: /terms

By Capitalor Data DeskUpdated 2026-08-14Reviewed 2026-08-14Editorial policyReport an error

Capitalor facts

The Capitalor Commercial Debt Rate Index places construction financing at 6.90% indicative, a 375 bps spread over the Government of Canada 5-year benchmark.
Typical structure: 65% LTV, interest-only, 2-year term.
The Capitalor DSCR Stress Band for this product starts at 1.00x coverage.

Indicative rate

6.90%

Typical LTV

65%

DSCR floor

1.00x

Term

2 yr

Capitalor Commercial Debt Rate Index · Last updated 2026-08-14 · Maintained by Capitalor Data Desk

Scope: Construction Financing · tier 1 · 134 markets published

Inputs: GoC 5-yr benchmark + 375 bps · 65% LTV · 1.00x DSCR · 25-yr amortization

Next scheduled review: 2026-09-14

Draw-based debt funding hard and soft costs through to occupancy.

How these figures were produced

Observed — Recorded directly from the cited source series, unadjusted.
Modelled — Derived arithmetically from observed inputs using the published method; not a market quote.
Baseline seed — A documented starting estimate awaiting first observation. Treat as an order-of-magnitude figure only.

How Capitalor computes these numbers

02Stress the debt

DSCR calculator

Preset to Construction Financing

Net operating income

Loan amount

Rate %

Amortization (yrs)

Target DSCR

Annual debt service

$378,223

DSCR

1.11x

Within Capitalor DSCR Stress Band

Max loan at 1.00x

$4,997,054

LTV calculator

Preset to Construction Financing

Property value

Loan amount

Lender max LTV %

Current LTV

69.2%

Above lender band

Max loan at cap

$4,225,000

Equity required

$2,275,000

04Choose city

Construction Financing by market

Debt service is computed on the market's average transaction at 65% LTV and 6.90% over 25 years.

134 rows

Construction Financing priced by Canadian market

Construction Financing in Toronto	1	100	5.1%	$8,600,000	$5,590,000	$469,837
Construction Financing in Montreal	1	100	5.4%	$6,100,000	$3,965,000	$333,256
Construction Financing in Vancouver	1	100	4.4%	$9,800,000	$6,370,000	$535,396
Construction Financing in Calgary	1	100	6.2%	$5,400,000	$3,510,000	$295,014
Construction Financing in Edmonton	1	100	6.6%	$4,300,000	$2,795,000	$234,918
Construction Financing in Ottawa	1	100	5.6%	$5,200,000	$3,380,000	$284,087
Construction Financing in Winnipeg	1	100	6.4%	$3,600,000	$2,340,000	$196,676
Construction Financing in Quebec City	1	100	6.0%	$3,400,000	$2,210,000	$185,749
Construction Financing in Hamilton	1	100	5.7%	$4,100,000	$2,665,000	$223,992
Construction Financing in Mississauga	1	100	5.2%	$6,800,000	$4,420,000	$371,499
Construction Financing in Brampton	1	100	5.4%	$5,100,000	$3,315,000	$278,624
Construction Financing in Surrey	1	100	4.9%	$5,900,000	$3,835,000	$322,330
Construction Financing in Halifax	2	100	5.8%	$3,900,000	$2,535,000	$213,066
Construction Financing in London	2	100	6.1%	$3,200,000	$2,080,000	$174,823
Construction Financing in Victoria	2	100	4.8%	$4,600,000	$2,990,000	$251,308
Construction Financing in Kitchener	2	100	5.9%	$3,500,000	$2,275,000	$191,213
Construction Financing in Burnaby	2	100	4.6%	$7,200,000	$4,680,000	$393,352
Construction Financing in Saskatoon	2	100	6.7%	$2,900,000	$1,885,000	$158,433
Construction Financing in Regina	2	100	6.9%	$2,600,000	$1,690,000	$142,044
Construction Financing in Windsor	2	100	6.5%	$2,700,000	$1,755,000	$147,507
Construction Financing in Laval	2	100	5.6%	$4,200,000	$2,730,000	$229,455
Construction Financing in Gatineau	2	100	6.0%	$3,100,000	$2,015,000	$169,360
Construction Financing in Richmond	3	100	4.7%	$6,400,000	$4,160,000	$349,646
Construction Financing in Oakville	3	100	5.3%	$4,800,000	$3,120,000	$262,235
Construction Financing in Burlington	3	100	5.5%	$4,300,000	$2,795,000	$234,918
Construction Financing in Kelowna	3	100	5.4%	$3,700,000	$2,405,000	$202,139
Construction Financing in St. John's	3	100	7.1%	$2,200,000	$1,430,000	$120,191
Construction Financing in Moncton	3	100	7.0%	$2,000,000	$1,300,000	$109,264
Construction Financing in Guelph	3	100	5.8%	$3,000,000	$1,950,000	$163,897
Construction Financing in Abbotsford	3	100	5.2%	$3,800,000	$2,470,000	$207,602
Construction Financing in Vaughan	2	100	5.2%	$6,200,000	$4,030,000	$338,720
Construction Financing in Markham	2	100	5.1%	$5,900,000	$3,835,000	$322,330
Construction Financing in Richmond Hill	3	100	5.3%	$4,700,000	$3,055,000	$256,771
Construction Financing in Oshawa	2	100	6.0%	$3,100,000	$2,015,000	$169,360
Construction Financing in Barrie	2	100	6.1%	$2,900,000	$1,885,000	$158,433
Construction Financing in St. Catharines	2	100	6.3%	$2,600,000	$1,690,000	$142,044
Construction Financing in Kingston	3	100	6.2%	$2,500,000	$1,625,000	$136,580
Construction Financing in Greater Sudbury	3	100	7.0%	$2,200,000	$1,430,000	$120,191
Construction Financing in Thunder Bay	3	100	7.3%	$1,900,000	$1,235,000	$103,801
Construction Financing in Peterborough	3	100	6.6%	$2,000,000	$1,300,000	$109,264
Construction Financing in Belleville	3	100	6.8%	$1,700,000	$1,105,000	$92,875
Construction Financing in Brantford	3	100	6.4%	$2,100,000	$1,365,000	$114,728
Construction Financing in Cambridge	3	100	6.0%	$2,800,000	$1,820,000	$152,970
Construction Financing in Milton	3	100	5.5%	$4,000,000	$2,600,000	$218,529
Construction Financing in Ajax	3	100	5.6%	$3,400,000	$2,210,000	$185,749
Construction Financing in Whitby	3	100	5.7%	$3,300,000	$2,145,000	$180,286
Construction Financing in Sarnia	3	100	7.0%	$1,800,000	$1,170,000	$98,338
Construction Financing in Longueuil	2	100	5.8%	$3,300,000	$2,145,000	$180,286
Construction Financing in Sherbrooke	3	100	6.5%	$2,200,000	$1,430,000	$120,191
Construction Financing in Trois-Rivières	3	100	6.8%	$1,900,000	$1,235,000	$103,801
Construction Financing in Saguenay	3	100	7.2%	$1,700,000	$1,105,000	$92,875
Construction Financing in Lévis	3	100	6.3%	$2,300,000	$1,495,000	$125,654
Construction Financing in Red Deer	3	100	7.4%	$1,900,000	$1,235,000	$103,801
Construction Financing in Lethbridge	3	100	7.2%	$1,900,000	$1,235,000	$103,801
Construction Financing in Fort McMurray	3	100	8.1%	$2,400,000	$1,560,000	$131,117
Construction Financing in Kamloops	3	100	5.9%	$2,600,000	$1,690,000	$142,044
Construction Financing in Nanaimo	3	100	5.6%	$2,700,000	$1,755,000	$147,507
Construction Financing in Chilliwack	3	100	5.5%	$2,800,000	$1,820,000	$152,970
Construction Financing in Coquitlam	2	100	4.8%	$5,200,000	$3,380,000	$284,087
Construction Financing in Langley	3	100	5.0%	$4,400,000	$2,860,000	$240,382
Construction Financing in Fredericton	3	100	7.0%	$1,700,000	$1,105,000	$92,875
Construction Financing in Saint John	3	100	7.3%	$1,600,000	$1,040,000	$87,412
Construction Financing in Charlottetown	3	100	6.9%	$1,700,000	$1,105,000	$92,875
Construction Financing in Whitehorse	3	100	7.5%	$1,500,000	$975,000	$81,948
Construction Financing in Yellowknife	3	100	8.0%	$1,400,000	$910,000	$76,485
Construction Financing in Iqaluit	3	100	8.4%	$1,300,000	$845,000	$71,022
Construction Financing in Terrebonne	2	100	6.1%	$2,100,000	$1,365,000	$114,728
Construction Financing in Saint-Jean-sur-Richelieu	3	100	6.4%	$1,800,000	$1,170,000	$98,338
Construction Financing in Repentigny	3	100	6.3%	$1,700,000	$1,105,000	$92,875
Construction Financing in Brossard	3	100	5.7%	$1,800,000	$1,170,000	$98,338
Construction Financing in Drummondville	3	100	6.9%	$1,600,000	$1,040,000	$87,412
Construction Financing in Saint-Jerome	3	100	6.6%	$1,700,000	$1,105,000	$92,875
Construction Financing in Granby	3	100	6.9%	$1,500,000	$975,000	$81,948
Construction Financing in Shawinigan	3	100	7.6%	$1,300,000	$845,000	$71,022
Construction Financing in Rimouski	3	100	7.4%	$1,300,000	$845,000	$71,022
Construction Financing in Victoriaville	3	100	7.2%	$1,300,000	$845,000	$71,022
Construction Financing in Rouyn-Noranda	3	100	7.8%	$1,200,000	$780,000	$65,559
Construction Financing in Val-d'Or	3	100	8.0%	$1,100,000	$715,000	$60,095
Construction Financing in Sept-Iles	3	100	8.2%	$1,000,000	$650,000	$54,632
Construction Financing in Salaberry-de-Valleyfield	3	100	7.0%	$1,200,000	$780,000	$65,559
Construction Financing in Newmarket	3	100	5.6%	$2,000,000	$1,300,000	$109,264
Construction Financing in Pickering	3	100	5.7%	$2,200,000	$1,430,000	$120,191
Construction Financing in Caledon	3	100	5.8%	$1,900,000	$1,235,000	$103,801
Construction Financing in Niagara Falls	3	100	6.3%	$2,100,000	$1,365,000	$114,728
Construction Financing in Waterloo	2	100	5.8%	$2,500,000	$1,625,000	$136,580
Construction Financing in Chatham-Kent	2	100	7.0%	$2,300,000	$1,495,000	$125,654
Construction Financing in Norfolk County	3	100	7.1%	$1,800,000	$1,170,000	$98,338
Construction Financing in Welland	3	100	6.7%	$1,600,000	$1,040,000	$87,412
Construction Financing in North Bay	3	100	7.3%	$1,600,000	$1,040,000	$87,412
Construction Financing in Sault Ste. Marie	3	100	7.5%	$1,800,000	$1,170,000	$98,338
Construction Financing in Cornwall	3	100	7.2%	$1,500,000	$975,000	$81,948
Construction Financing in Timmins	3	100	7.9%	$1,400,000	$910,000	$76,485
Construction Financing in Orillia	3	100	6.9%	$1,300,000	$845,000	$71,022
Construction Financing in Woodstock	3	100	6.7%	$1,500,000	$975,000	$81,948
Construction Financing in Stratford	3	100	6.8%	$1,300,000	$845,000	$71,022
Construction Financing in Owen Sound	3	100	7.2%	$1,200,000	$780,000	$65,559
Construction Financing in Bradford West Gwillimbury	3	100	6.0%	$1,500,000	$975,000	$81,948
Construction Financing in Halton Hills	3	100	5.9%	$1,700,000	$1,105,000	$92,875
Construction Financing in Airdrie	3	100	6.8%	$1,700,000	$1,105,000	$92,875
Construction Financing in St. Albert	3	100	6.9%	$1,600,000	$1,040,000	$87,412
Construction Financing in Grande Prairie	3	100	7.6%	$1,600,000	$1,040,000	$87,412
Construction Financing in Medicine Hat	3	100	7.6%	$1,600,000	$1,040,000	$87,412
Construction Financing in Spruce Grove	3	100	7.1%	$1,300,000	$845,000	$71,022
Construction Financing in Leduc	3	100	7.2%	$1,200,000	$780,000	$65,559
Construction Financing in Fort Saskatchewan	3	100	7.3%	$1,100,000	$715,000	$60,095
Construction Financing in Okotoks	3	100	6.9%	$1,200,000	$780,000	$65,559
Construction Financing in Cochrane	3	100	6.9%	$1,200,000	$780,000	$65,559
Construction Financing in West Kelowna	3	100	5.6%	$1,700,000	$1,105,000	$92,875
Construction Financing in Vernon	3	100	5.9%	$1,800,000	$1,170,000	$98,338
Construction Financing in Penticton	3	100	5.8%	$1,700,000	$1,105,000	$92,875
Construction Financing in Courtenay	3	100	5.8%	$1,600,000	$1,040,000	$87,412
Construction Financing in Campbell River	3	100	6.1%	$1,700,000	$1,105,000	$92,875
Construction Financing in Cranbrook	3	100	6.6%	$1,500,000	$975,000	$81,948
Construction Financing in Prince George	3	100	6.8%	$2,400,000	$1,560,000	$131,117
Construction Financing in Delta	2	100	5.0%	$2,900,000	$1,885,000	$158,433
Construction Financing in Maple Ridge	3	100	5.2%	$2,600,000	$1,690,000	$142,044
Construction Financing in New Westminster	3	100	4.9%	$2,400,000	$1,560,000	$131,117
Construction Financing in North Vancouver	3	100	4.7%	$2,100,000	$1,365,000	$114,728
Construction Financing in Port Coquitlam	3	100	5.1%	$2,100,000	$1,365,000	$114,728
Construction Financing in Brandon	3	100	7.1%	$1,100,000	$715,000	$60,095
Construction Financing in Steinbach	3	100	7.4%	$800,000	$520,000	$43,706
Construction Financing in Winkler	3	100	7.6%	$800,000	$520,000	$43,706
Construction Financing in Moose Jaw	3	100	7.5%	$900,000	$585,000	$49,169
Construction Financing in Prince Albert	3	100	7.7%	$1,000,000	$650,000	$54,632
Construction Financing in Swift Current	3	100	7.8%	$800,000	$520,000	$43,706
Construction Financing in Sydney	3	100	7.6%	$1,000,000	$650,000	$54,632
Construction Financing in Truro	3	100	7.5%	$800,000	$520,000	$43,706
Construction Financing in Dartmouth	3	100	6.0%	$1,600,000	$1,040,000	$87,412
Construction Financing in Dieppe	3	100	6.9%	$800,000	$520,000	$43,706
Construction Financing in Miramichi	3	100	7.7%	$700,000	$455,000	$38,243
Construction Financing in Bathurst	3	100	7.9%	$700,000	$455,000	$38,243
Construction Financing in Corner Brook	3	100	7.8%	$700,000	$455,000	$38,243
Construction Financing in Mount Pearl	3	100	7.3%	$700,000	$455,000	$38,243
Construction Financing in Summerside	3	100	7.2%	$700,000	$455,000	$38,243

Sources

[1] Bank of Canada valet API — GoC 5-year benchmark
[2] Capitalor lender term sampling — LTV, DSCR, amortization norms