01Size the deal
Owner-Occupied Financing in Toronto, ON
Capitalor facts
- The Capitalor Commercial Debt Rate Index prices owner-occupied financing in Toronto at 5.25% indicative.
- Toronto scores 100 on the Capitalor Lender Density Score with 142 tracked lenders and brokers.
- The average Toronto commercial transaction of $8,600,000 supports roughly $6,450,000 of senior debt at 75% LTV.
Indicative rate
5.25%
Lender density
100
Avg deal size
$8,600,000
Cap rate seed
5.1%
Capitalor Commercial Debt Rate Index · Last updated 2026-08-12 · Maintained by Capitalor Data Desk
Scope: Owner-Occupied Financing · Toronto, ON · Tier 1 market
Inputs: Benchmark + 210 bps spread, 142-lender census, 5.1% cap-rate seed
Next scheduled review: 2026-09-14
owner-occupied financing in Toronto prices off the Government of Canada 5-year benchmark bond yield plus a 210 bps owner-occupied financing spread, landing at 5.25% indicative. Debt underwritten on business cash flow rather than third-party rent. On the $8,600,000 average Toronto transaction, a 75% advance is $6,450,000, carrying $521,555 of annual debt service on a 20-year amortization and a 5-year term.
Coverage binds before leverage here. At a mid-band 5.1% cap rate the asset throws off roughly $438,600 of NOI, which supports $4,339,282 at the 1.25x floor — about $2,110,718 below the 75% LTV ceiling. Underwrite to the coverage number and treat the LTV cap as a secondary test, or bring the gap in equity.
Toronto scores 100 on the Capitalor Lender Density Score — a deep market, with 142 tracked lenders and brokers against 61,200 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 $6,450,000 loan constant, coverage falls to the 1.25x floor at roughly 0.85% — 0.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Toronto deal survives renewal.
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.
Benchmark: GoC 5-year at 4.45% — observed from the Bank of Canada Valet API on 2026-08-12. Spread, LTV and DSCR figures on this page are modelled from that benchmark.
What does owner-occupied financing cost in Toronto?
Indicative pricing sits at 5.25% with a 1.25x coverage floor and 75% LTV cap. On the $8,600,000 average Toronto deal that is $4,339,282 of proceeds, bound by coverage, at $521,555 of annual debt service.
02Stress the debt
10 observations from 2026-06-10 to 2026-08-12. Net move +0.00 percentage points. Capitalor never deletes an observation.
Loan and NOI held constant. Where the curve crosses the floor line is the rate at which this deal stops covering its debt service.
DSCR calculator
Preset to Owner-Occupied Financing, Toronto
Annual debt service
$521,555
DSCR
0.84x
Below lender threshold
Max loan at 1.25x
$4,339,282
LTV calculator
Preset to Owner-Occupied Financing, Toronto
Current LTV
75.0%
Inside lender band
Max loan at cap
$6,450,000
Equity required
$2,150,000
03Compare lenders
Capitalor Lender Density Score — Toronto
Active commercial lenders and brokers per 10,000 commercial buildings, indexed 0–100.
- Lenders tracked
- 26
- Observed
- Commercial buildings
- 61,200
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ActQuestions
What rate should I expect on owner-occupied financing in Toronto?
5.25% indicative — the Government of Canada 5-year benchmark bond yield plus a 210 bps owner-occupied financing spread. Individual quotes move with covenant strength, asset quality, and sponsor track record, and Toronto's deep lender market widens or narrows that dispersion.
How large a loan does a typical Toronto deal support?
On the $8,600,000 average transaction, a 75% advance is $6,450,000. Coverage separately caps the loan at $4,339,282 using $438,600 of NOI against a 1.25x floor, so the binding number is $4,339,282.
Does coverage or leverage bind first on this product in Toronto?
Coverage. The 5.1% cap rate leaves the DSCR test binding roughly $2,110,718 below the 75% LTV ceiling, so extra appraised value will not buy extra proceeds.
What is the annual debt service at that loan amount?
$521,555 per year — $43,463 monthly on a 20-year amortization at 5.25%, against a 5-year term.
How much rate headroom is there before the deal breaks coverage?
Roughly 0.00%. Holding the loan and NOI constant, coverage reaches the 1.25x floor at about 0.85% — the number that matters at renewal.
How many lenders write this product in Toronto?
Capitalor tracks 142 active lenders and brokers in Toronto, a Lender Density Score of 100 against 61,200 commercial buildings — a deep market.
Is this pricing a quote?
No. It is an index benchmark published for comparison, not an offer of credit. Capitalor does not originate, broker, or place debt.
How often does this page change?
Benchmark rate observations refresh each business day; the lender census refreshes monthly; cap-rate and transaction seeds refresh quarterly. Nothing is deleted from the series — revisions are appended so prior observations stay auditable.
Can I export these numbers?
Yes. The debt scope builder on this page exports a term-sheet-ready PDF from your own inputs. No email, no account, no gate.
Sources
- [1] Bank of Canada — benchmark rate series — Government of Canada 5-year benchmark bond yield and policy rate; refreshed each business day
- [2] Statistics Canada — census of population — Toronto population base (2,794,356)
- [3] Capitalor lender census — 142 lenders and brokers observed writing in Toronto; refreshed monthly
- [4] Capitalor transaction sampling — Toronto average deal size $8,600,000 and 5.1% cap-rate seed
- [5] Capitalor Commercial Debt Rate Index — Owner-Occupied Financing spread of 210 bps over the 5-year benchmark
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