Commercial Refinance in Calgary, AB

commercial refinance in Calgary prices off the Government of Canada 5-year benchmark bond yield plus a 185 bps commercial refinance spread, landing at 5.00% indicative. Replacement debt on maturing terms, often with an equity take-out. On the $5,400,000 average Calgary transaction, a 75% advance is $4,050,000, carrying $284,111 of annual debt service on a 25-year amortization and a 5-year term.

Coverage binds before leverage here. At a wide 6.2% cap rate the asset throws off roughly $334,800 of NOI, which supports $3,818,060 at the 1.25x floor — about $231,940 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.

Calgary scores 100 on the Capitalor Lender Density Score — a deep market, with 84 tracked lenders and brokers against 27,800 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 $4,050,000 loan constant, coverage falls to the 1.25x floor at roughly 4.42% — 0.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Calgary deal survives renewal.