Construction Financing in Gatineau, QC

construction financing in Gatineau prices off the Government of Canada 5-year benchmark bond yield plus a 375 bps construction financing spread, landing at 6.90% indicative. Draw-based debt funding hard and soft costs through to occupancy. On the $3,100,000 average Gatineau transaction, a 65% advance is $2,015,000, carrying $169,360 of annual debt service on a 0-year amortization and a 2-year term.

Leverage binds before coverage here. The mid-band 6.0% cap rate produces roughly $186,000 of NOI, enough for $2,212,981 at a 1.00x floor — about $197,981 above what the 65% LTV cap will advance. The deal is sized by value, so the appraisal, not the rent roll, is the document to get right first.

Gatineau scores 100 on the Capitalor Lender Density Score — a deep market, with 17 tracked lenders and brokers against 6,100 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 $2,015,000 loan constant, coverage falls to the 1.00x floor at roughly 7.96% — 1.06% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Gatineau deal survives renewal.