01Size the deal
Land Financing in Canada
Capitalor facts
- The Capitalor Commercial Debt Rate Index places land financing at 8.40% indicative, a 525 bps spread over the Government of Canada 5-year benchmark.
- Typical structure: 50% LTV, interest-only, 2-year term.
- The Capitalor DSCR Stress Band for this product starts at 0.00x coverage.
Indicative rate
8.40%
Typical LTV
50%
DSCR floor
0.00x
Term
2 yr
Capitalor Commercial Debt Rate Index · Last updated 2026-08-14 · Maintained by Capitalor Data Desk
Scope: Land Financing · tier 2 · 33 markets published
Inputs: GoC 5-yr benchmark + 525 bps · 50% LTV · 0.00x DSCR · 25-yr amortization
Next scheduled review: 2026-09-14
Pre-development debt secured by raw or serviced land inventory.
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.
02Stress the debt
DSCR calculator
Preset to Land Financing
Annual debt service
$431,190
DSCR
0.97x
Below lender threshold
Max loan at 1.20x
$3,652,685
LTV calculator
Preset to Land Financing
Current LTV
69.2%
Above lender band
Max loan at cap
$3,250,000
Equity required
$3,250,000
04Choose city
Land Financing by market
Debt service is computed on the market's average transaction at 50% LTV and 8.40% over 25 years.
| Land Financing in Toronto | 1 | 100 | 5.1% | $8,600,000 | $4,300,000 | $412,026 |
| Land Financing in Montreal | 1 | 100 | 5.4% | $6,100,000 | $3,050,000 | $292,251 |
| Land Financing in Vancouver | 1 | 100 | 4.4% | $9,800,000 | $4,900,000 | $469,518 |
| Land Financing in Calgary | 1 | 100 | 6.2% | $5,400,000 | $2,700,000 | $258,714 |
| Land Financing in Edmonton | 1 | 100 | 6.6% | $4,300,000 | $2,150,000 | $206,013 |
| Land Financing in Ottawa | 1 | 100 | 5.6% | $5,200,000 | $2,600,000 | $249,132 |
| Land Financing in Winnipeg | 1 | 100 | 6.4% | $3,600,000 | $1,800,000 | $172,476 |
| Land Financing in Quebec City | 1 | 100 | 6.0% | $3,400,000 | $1,700,000 | $162,894 |
| Land Financing in Hamilton | 1 | 100 | 5.7% | $4,100,000 | $2,050,000 | $196,431 |
| Land Financing in Mississauga | 1 | 100 | 5.2% | $6,800,000 | $3,400,000 | $325,788 |
| Land Financing in Brampton | 1 | 100 | 5.4% | $5,100,000 | $2,550,000 | $244,341 |
| Land Financing in Surrey | 1 | 100 | 4.9% | $5,900,000 | $2,950,000 | $282,669 |
| Land Financing in Halifax | 2 | 100 | 5.8% | $3,900,000 | $1,950,000 | $186,849 |
| Land Financing in London | 2 | 100 | 6.1% | $3,200,000 | $1,600,000 | $153,312 |
| Land Financing in Victoria | 2 | 100 | 4.8% | $4,600,000 | $2,300,000 | $220,386 |
| Land Financing in Kitchener | 2 | 100 | 5.9% | $3,500,000 | $1,750,000 | $167,685 |
| Land Financing in Burnaby | 2 | 100 | 4.6% | $7,200,000 | $3,600,000 | $344,952 |
| Land Financing in Saskatoon | 2 | 100 | 6.7% | $2,900,000 | $1,450,000 | $138,939 |
| Land Financing in Regina | 2 | 100 | 6.9% | $2,600,000 | $1,300,000 | $124,566 |
| Land Financing in Windsor | 2 | 100 | 6.5% | $2,700,000 | $1,350,000 | $129,357 |
| Land Financing in Laval | 2 | 100 | 5.6% | $4,200,000 | $2,100,000 | $201,222 |
| Land Financing in Gatineau | 2 | 100 | 6.0% | $3,100,000 | $1,550,000 | $148,521 |
| Land Financing in Vaughan | 2 | 100 | 5.2% | $6,200,000 | $3,100,000 | $297,042 |
| Land Financing in Markham | 2 | 100 | 5.1% | $5,900,000 | $2,950,000 | $282,669 |
| Land Financing in Oshawa | 2 | 100 | 6.0% | $3,100,000 | $1,550,000 | $148,521 |
| Land Financing in Barrie | 2 | 100 | 6.1% | $2,900,000 | $1,450,000 | $138,939 |
| Land Financing in St. Catharines | 2 | 100 | 6.3% | $2,600,000 | $1,300,000 | $124,566 |
| Land Financing in Longueuil | 2 | 100 | 5.8% | $3,300,000 | $1,650,000 | $158,103 |
| Land Financing in Coquitlam | 2 | 100 | 4.8% | $5,200,000 | $2,600,000 | $249,132 |
| Land Financing in Terrebonne | 2 | 100 | 6.1% | $2,100,000 | $1,050,000 | $100,611 |
| Land Financing in Waterloo | 2 | 100 | 5.8% | $2,500,000 | $1,250,000 | $119,775 |
| Land Financing in Chatham-Kent | 2 | 100 | 7.0% | $2,300,000 | $1,150,000 | $110,193 |
| Land Financing in Delta | 2 | 100 | 5.0% | $2,900,000 | $1,450,000 | $138,939 |
ActQuestions
What rate does land financing carry today?
The Capitalor Commercial Debt Rate Index shows 8.40% indicative, a 525 bps spread over the GoC 5-year benchmark.
What does land financing cost to service per $1M borrowed?
$95,820 a year at 8.40% 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 50% LTV the sponsor funds the remaining 50% plus closing costs.
Which coverage ratio clears credit?
0.00x 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 land financing data?
33. Tier 2 products publish only in markets deep enough to support them, so the count is deliberately short of all 66 tracked markets.
Sources
- [1] Bank of Canada valet API — GoC 5-year benchmark
- [2] Capitalor lender term sampling — LTV, DSCR, amortization norms
Not advice — Capitalor is a data publisher. We do not originate, broker, arrange, or place debt, and nothing here is an offer of credit, a quote, or financial advice. Figures are indicative benchmarks for comparison and must be confirmed with a licensed lender or mortgage professional before you rely on them. About Capitalor