01Size the deal
Mezzanine Financing in Canada
Capitalor facts
- The Capitalor Commercial Debt Rate Index places mezzanine financing at 11.65% indicative, a 850 bps spread over the Government of Canada 5-year benchmark.
- Typical structure: 85% LTV, interest-only, 3-year term.
- The Capitalor DSCR Stress Band for this product starts at 1.00x coverage.
Indicative rate
11.65%
Typical LTV
85%
DSCR floor
1.00x
Term
3 yr
Capitalor Commercial Debt Rate Index · Last updated 2026-08-14 · Maintained by Capitalor Data Desk
Scope: Mezzanine Financing · tier 2 · 33 markets published
Inputs: GoC 5-yr benchmark + 850 bps · 85% LTV · 1.00x DSCR · 25-yr amortization
Next scheduled review: 2026-09-14
Subordinate debt filling the gap between senior loan and sponsor equity.
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 Mezzanine Financing
Annual debt service
$554,826
DSCR
0.76x
Below lender threshold
Max loan at 1.00x
$3,406,476
LTV calculator
Preset to Mezzanine Financing
Current LTV
69.2%
Inside lender band
Max loan at cap
$5,525,000
Equity required
$975,000
04Choose city
Mezzanine Financing by market
Debt service is computed on the market's average transaction at 85% LTV and 11.65% over 25 years.
| Mezzanine Financing in Toronto | 1 | 100 | 5.1% | $8,600,000 | $7,310,000 | $901,283 |
| Mezzanine Financing in Montreal | 1 | 100 | 5.4% | $6,100,000 | $5,185,000 | $639,282 |
| Mezzanine Financing in Vancouver | 1 | 100 | 4.4% | $9,800,000 | $8,330,000 | $1,027,044 |
| Mezzanine Financing in Calgary | 1 | 100 | 6.2% | $5,400,000 | $4,590,000 | $565,922 |
| Mezzanine Financing in Edmonton | 1 | 100 | 6.6% | $4,300,000 | $3,655,000 | $450,642 |
| Mezzanine Financing in Ottawa | 1 | 100 | 5.6% | $5,200,000 | $4,420,000 | $544,962 |
| Mezzanine Financing in Winnipeg | 1 | 100 | 6.4% | $3,600,000 | $3,060,000 | $377,281 |
| Mezzanine Financing in Quebec City | 1 | 100 | 6.0% | $3,400,000 | $2,890,000 | $356,321 |
| Mezzanine Financing in Hamilton | 1 | 100 | 5.7% | $4,100,000 | $3,485,000 | $429,682 |
| Mezzanine Financing in Mississauga | 1 | 100 | 5.2% | $6,800,000 | $5,780,000 | $712,643 |
| Mezzanine Financing in Brampton | 1 | 100 | 5.4% | $5,100,000 | $4,335,000 | $534,482 |
| Mezzanine Financing in Surrey | 1 | 100 | 4.9% | $5,900,000 | $5,015,000 | $618,322 |
| Mezzanine Financing in Halifax | 2 | 100 | 5.8% | $3,900,000 | $3,315,000 | $408,721 |
| Mezzanine Financing in London | 2 | 100 | 6.1% | $3,200,000 | $2,720,000 | $335,361 |
| Mezzanine Financing in Victoria | 2 | 100 | 4.8% | $4,600,000 | $3,910,000 | $482,082 |
| Mezzanine Financing in Kitchener | 2 | 100 | 5.9% | $3,500,000 | $2,975,000 | $366,801 |
| Mezzanine Financing in Burnaby | 2 | 100 | 4.6% | $7,200,000 | $6,120,000 | $754,563 |
| Mezzanine Financing in Saskatoon | 2 | 100 | 6.7% | $2,900,000 | $2,465,000 | $303,921 |
| Mezzanine Financing in Regina | 2 | 100 | 6.9% | $2,600,000 | $2,210,000 | $272,481 |
| Mezzanine Financing in Windsor | 2 | 100 | 6.5% | $2,700,000 | $2,295,000 | $282,961 |
| Mezzanine Financing in Laval | 2 | 100 | 5.6% | $4,200,000 | $3,570,000 | $440,162 |
| Mezzanine Financing in Gatineau | 2 | 100 | 6.0% | $3,100,000 | $2,635,000 | $324,881 |
| Mezzanine Financing in Vaughan | 2 | 100 | 5.2% | $6,200,000 | $5,270,000 | $649,762 |
| Mezzanine Financing in Markham | 2 | 100 | 5.1% | $5,900,000 | $5,015,000 | $618,322 |
| Mezzanine Financing in Oshawa | 2 | 100 | 6.0% | $3,100,000 | $2,635,000 | $324,881 |
| Mezzanine Financing in Barrie | 2 | 100 | 6.1% | $2,900,000 | $2,465,000 | $303,921 |
| Mezzanine Financing in St. Catharines | 2 | 100 | 6.3% | $2,600,000 | $2,210,000 | $272,481 |
| Mezzanine Financing in Longueuil | 2 | 100 | 5.8% | $3,300,000 | $2,805,000 | $345,841 |
| Mezzanine Financing in Coquitlam | 2 | 100 | 4.8% | $5,200,000 | $4,420,000 | $544,962 |
| Mezzanine Financing in Terrebonne | 2 | 100 | 6.1% | $2,100,000 | $1,785,000 | $220,081 |
| Mezzanine Financing in Waterloo | 2 | 100 | 5.8% | $2,500,000 | $2,125,000 | $262,001 |
| Mezzanine Financing in Chatham-Kent | 2 | 100 | 7.0% | $2,300,000 | $1,955,000 | $241,041 |
| Mezzanine Financing in Delta | 2 | 100 | 5.0% | $2,900,000 | $2,465,000 | $303,921 |
ActQuestions
What rate does mezzanine financing carry today?
The Capitalor Commercial Debt Rate Index shows 11.65% indicative, a 850 bps spread over the GoC 5-year benchmark.
What does mezzanine financing cost to service per $1M borrowed?
$123,295 a year at 11.65% 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 85% LTV the sponsor funds the remaining 15% 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 mezzanine 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