Commercial Refinance in Victoria, BC

commercial refinance in Victoria 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 $4,600,000 average Victoria transaction, a 75% advance is $3,450,000, carrying $242,020 of annual debt service on a 25-year amortization and a 5-year term.

Coverage binds before leverage here. At a compressed 4.8% cap rate the asset throws off roughly $220,800 of NOI, which supports $2,518,004 at the 1.25x floor — about $931,996 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.

Victoria scores 100 on the Capitalor Lender Density Score — a deep market, with 27 tracked lenders and brokers against 8,900 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 $3,450,000 loan constant, coverage falls to the 1.25x floor at roughly 2.06% — 0.00% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Victoria deal survives renewal.