Portfolio Financing in Edmonton, AB

portfolio financing in Edmonton prices off the Government of Canada 5-year benchmark bond yield plus a 200 bps portfolio financing spread, landing at 5.15% indicative. One credit facility cross-collateralized across multiple assets. On the $4,300,000 average Edmonton transaction, a 68% advance is $2,924,000, carrying $208,199 of annual debt service on a 25-year amortization and a 5-year term.

Leverage binds before coverage here. The wide 6.6% cap rate produces roughly $283,800 of NOI, enough for $3,065,968 at a 1.30x floor — about $141,968 above what the 68% LTV cap will advance. The deal is sized by value, so the appraisal, not the rent roll, is the document to get right first.

Edmonton scores 100 on the Capitalor Lender Density Score — a deep market, with 63 tracked lenders and brokers against 23,600 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 $2,924,000 loan constant, coverage falls to the 1.30x floor at roughly 5.63% — 0.48% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Edmonton deal survives renewal.