Financing & Commercial Mortgages

Financing commercial real estate in Alberta requires a different approach than residential lending. Commercial mortgages are driven by cash flow strength, business stability, and the property’s ability to service debt—not personal income alone. Alberta remains one of the most competitive and business-friendly provinces for commercial lending, supported by strong asset values, favourable tax structures, and diverse tenant demand across industrial, retail, office, and mixed-use properties.

With banks, credit unions, BDC, private lenders, and CMHC-backed options available, buyers can structure financing around their investment goals—whether acquiring an income-producing commercial asset, purchasing a business with leased premises, or buying a building for their own company. Understanding DSCR requirements, amortization options, down payment expectations, and lender criteria is essential for securing strong financing terms and maximizing ROI.

Ready to take the next step? (587)-719-5523 / Get in touch or visit MohitDhillon.com with us today to discuss your commercial real estate goals or schedule a personalized property tour.

Start Smart

Your Roadmap to Buying a Profitable Alberta Business

Commercial mortgages evaluate the property’s income strength and risk profile, not just the borrower’s personal finances. Lenders focus heavily on DSCR (Debt Service Coverage Ratio), lease stability, tenant quality, appraisal value, and business performance when approving a loan. Down payments typically range from 25%–35%, and amortizations can extend from 15 to 25 years depending on the asset type. Strong financials, clean leases, and predictable net operating income (NOI) help buyers secure more favourable terms.

KEY POINTS

• DSCR is the most important metric
• Typical down payment: 25–35%
• Amortization: 15–25 years
• NOI must support loan payments
• Tenant stability affects approval

(Talk to a licensed mortgage advisor for custom guides. The following is for general info only.)

DSCR Rules

Lenders require a Debt Service Coverage Ratio of 1.20–1.35+, depending on risk, meaning the property’s net income must comfortably cover the mortgage payment.

Down Payments

Commercial loans require 25–35% down, with higher amounts for specialty properties or those with weaker financials or short lease terms.

Down Payments

Interest rates depend on risk level, lender type, asset class, term length, and tenant strength. Multi-tenant industrial and retail often receive the strongest terms.


Lender Options

Buyers can secure financing through major banks, credit unions, BDC, CMHC (for mixed-use/residential components), and private lenders for fast or flexible structures.

Mortgage Calculator

How much can you afford?

Mortgage Summary

This calculator is for information purposes only. Users should not use this calculator to make any financial decisions and should speak with their bank or mortgage broker. The website owner does not guarantee the accuracy or reliability of any information or calculations provided by this calculator. The website owner is not liable for loss or damage of any kind arising from the use of this tool.

Quick Investor Snapshot

Let us help you through the process!

• Down payment: 25–35%
• DSCR target: 1.20–1.35
• Amortization: 15–25 years
• Rates: 6–8% (typical)
• Lenders: Banks, Credit Unions, BDC, Private
• VTB available on many deals
• Strong NOI = better terms
• Appraisal required

Deep Advisory: What Investors Must Know

Commercial mortgage underwriting in Alberta is built around property performance, not household income.

Loan Qualification: Lenders review 2–3 years of NOI, lease agreements, tenant strength, and market stability. Owner-user buyers must provide business financials and tax returns.

DSCR & Cash Flow: A DSCR of 1.20 means the property earns 20% more income than required to cover mortgage payments. Higher DSCR = better rates and more lender confidence.

Amortization: Industrial, retail, and office properties typically receive 20–25 year amortizations. Specialty assets (restaurants, automotive, medical) may receive 15–20 years due to higher perceived risk.

Interest Rates: Alberta commercial rates usually range between 6%–8% depending on term, lender, and risk. Banks offer the lowest rates; private lenders offer speed and flexibility.

Down Payment Requirements: Most commercial buyers need 25–35% down, but strong leases, national tenants, and long terms can improve leverage. Startups with no cash flow often require higher equity or BDC support.

Vendor Financing (VTB): In Alberta, many commercial deals include a Vendor Take-Back mortgage, reducing the buyer's upfront capital and improving DSCR.

CMHC Financing: For mixed-use buildings with residential components, CMHC offers extremely favourable terms—lower rates, long amortizations, and higher loan-to-value ratios.

Strong documentation, organized financials, and an experienced broker dramatically improve approval outcomes.

Financing & Commercial Mortgages

How to Finance & get a Commercial Mortgage in Calgary, Alberta

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1-12/13

  • 52510 Anderson Road in Rural Yellowhead County: Mixed Use for sale : MLS®# A1174819

    52510 Anderson Road Rural Yellowhead County T7E 1T9
    Main Photo: 52510 Anderson Road in Rural Yellowhead County: Mixed Use for sale : MLS®# A1174819

    52510 Anderson Road Rural Yellowhead County T7E 1T9

    $1,200,000
    Commercial
    Status:
    Active
    MLS® Num:
    A1174819
    Build. Type:
    Mixed Use
    An opportunity to own an incredible well established business on 8.48 acres in the gorgeous foothills of Alberta. Andersons Dog Kennels & Grooming Ltd. is nestled between Hinton and Edson, allowing the business to capture clientele en-route from Edmonton to Jasper and locals from the Hinton, Edson and Jasper area. The dog kennel facilities can comfortably accommodate more than 120 dogs at one time when fully staffed. It offers space for large dogs, small dogs, puppy land, overflow /special needs, as well as a kitty land. There is also a licenced crematorium on site . Andersons Dog Kennels & Grooming Ltd. has established a great reputation and is known to provide exceptional care for animals, the vibe and energy of the space leaves animal families feeling confident their furry friends are in great hands. The property also has a 3 bedroom, 2 bathroom dwelling (built in 1991) allowing staff to reside onsite and is currently collecting a solid revenue. The main building 4020sqft ( built in 2005) is home to puppy land, kitty land, overflow (or special needs space), a grooming facility, laundry, retail, office space and an abundance of storage. The dog kennel building ( built in 2007) is 2132 sqft and offers both indoor and outdoor space. The crematorium is the newest facility on site (12 years old) and is a sacred space tucked near the gazebo. There is a small unserviced cabin " The Bunkie" on the property that is a great place to enjoy a coffee before the days work begins. This may be a thriving business but it has been grown from a passion and the books are a reflection of that! It is an opportunity not to be missed! Seller will consider financing the property. More details
    Listed by ROYAL LEPAGE EDSON REAL ESTATE
    LISTING DETAILS
    Mohit Dhilon

  • 1-12 4607 73 Street NW in Calgary: Bowness Multi Family for sale : MLS®# A2225168

    1-12 4607 73 Street NW Bowness Calgary T3B 2M3
    Main Photo: 1-12 4607 73 Street NW in Calgary: Bowness Multi Family for sale : MLS®# A2225168

    1-12 4607 73 Street NW Calgary T3B 2M3 Bowness

    $3,150,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2225168
    Build. Type:
    Low Rise (2-4 stories)
    This is the sale of units 1-12 inclusive in condo plan 7811038. All units are 12 bi-level townhomes, 2 beds and 1 bath, with washer/dryer hook-ups. Tenants pay their own utilities and supply their own washer/dryer. Each unit has its own separate entrance, with around 1100 sqft of rentable space, and its own furnace/hot water tank. M-C1 lot measuring 120 ft. x 150 ft. 12 parking stalls with electrical hook-ups. Bowness is on the rise as an emerging neighborhood with ongoing new development, due to its close proximity to the Bow River, University of Calgary and easy access to the Trans-Canada Highway. ** Seller financing can be discussed More details
    Listed by Michael Fleming Realty Corp.
    LISTING DETAILS
    Mohit Dhilon

  • 4932 21 Avenue NW in Calgary: Montgomery Multi Family for sale : MLS®# A2254062

    4932 21 Avenue NW Montgomery Calgary T3B 0X2
    Main Photo: 4932 21 Avenue NW in Calgary: Montgomery Multi Family for sale : MLS®# A2254062

    4932 21 Avenue NW Calgary T3B 0X2 Montgomery

    $3,100,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2254062
    Build. Type:
    See Remarks
    Don't miss out on this brand new 8plex complete with a 4-car detached garage at the rear. This unique offering features 8 modern units across 2 separate buildings (front and back buildings). The front building will feature 4 bedroom upper units while the back building will feature 3 bedroom upper units. This property has strong rental potential and the flexibility to generate cash flow, especially using the MLI Select program. Each residence is thoughtfully designed with contemporary finishes, open-concept layouts, and low-maintenance exteriors—perfect for attracting quality tenants. Located in the heart of Montgomery, this property is steps from the Bow River pathway system, Edworthy Park, Market Mall, Foothills Hospital, and the University of Calgary, making it highly desirable for professionals, students, and families alike. With quick access to downtown, major roadways, and transit, the location is both convenient and connected. This is a turnkey commercial multi-family property offering investors a rare chance to secure long-term rental income in one of Calgary’s most sought-after and evolving communities. CMHC MLI Select mortgage to be assumed, contact for more details. More details
    Listed by eXp Realty
    LISTING DETAILS
    Mohit Dhilon

  • 81 Barstow Street in Carseland: Mixed Use for sale : MLS®# A2255372

    81 Barstow Street Carseland T0J 0M0
    Main Photo: 81 Barstow Street in Carseland: Mixed Use for sale : MLS®# A2255372

    81 Barstow Street Carseland T0J 0M0

    $1,300,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2255372
    Build. Type:
    Free-Standing
    Incredible opportunity to acquire a fully serviced and highly functional commercial property just 25 minutes southeast of Calgary in the growing community of Carseland. Zoned HC (Highway Commercial), this 0.65-acre parcel offers exceptional flexibility for a wide range of business types including mechanical repair, autobody, contractor shops, trucking and transportation, landscaping, equipment rental, light manufacturing, and storage. The site features a well-built, heated, and insulated 1,850 square foot industrial shop built in 2017 with 18-foot ceilings, two 14-foot overhead doors, interior metal cladding, 8" concrete slab floor, 12,000-pound hoist, 5HP air compressor, central floor sump, dedicated shop washroom, ventilation, and overhead unit heater. The infrastructure supports heavy equipment, fleet vehicles, and wet-use operations, making it ideal for trades, fabrication, or transportation-related businesses. On-site is a spacious three-bedroom, two-bathroom mobile home currently used as a live-work residence. It includes a full kitchen, open-concept living area, large deck, and dog run. This structure offers outstanding versatility for owner occupancy, business office, staff housing, or potential rental income. Both buildings are situated on a fully fenced and graveled lot with good drainage, security lighting, and two included Seacans for additional storage. The property is positioned just minutes from Highway 24, the Goldfinch Industrial Area, the new CGC plant, and De Havilland Field. With no municipal business tax, lower annual property taxes than Calgary, and a flexible zoning framework, the site presents a compelling case for both owner-operators and commercial investors. Financing options may include CMHC if occupied as a residence, or business acquisition financing through BDC or Community Futures. Financial statements and equipment lists available upon request. Showings by appointment only. Please do not enter the property or approach staff without authorization. More details
    Listed by Synterra Realty
    LISTING DETAILS
    Mohit Dhilon

  • 6240 18A Street SE in Calgary: Ogden Multi Family for sale : MLS®# A2261107

    6240 18A Street SE Ogden Calgary T2C 0B9
    Main Photo: 6240 18A Street SE in Calgary: Ogden Multi Family for sale : MLS®# A2261107

    6240 18A Street SE Calgary T2C 0B9 Ogden

    $4,000,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2261107
    For more information, please click the "More Information" button. A brand new concrete building including suspended slab concrete main floor and 2 concrete firewall party walls. Well located a mere 600m from the future Pop Davies Green Line Station. The building is cladded in long-life exterior finishes with beautiful stucco and brick work alternating between units. Upper Townhomes feature engineered hardwood flooring, high quality appliance set including gas ranges, dishwashers, microwave, French door fridge and full size washer/ dryer with gas dryers. Quartz counters, commercial champagne bronze Delta fixtures and custom lighting. Stain-resistant carpet throughout the upper floor and beautiful tile work in all the bathrooms. The 3 bedroom, 2.5 bath floor plans provide ample space for families, small or large, and the addition of 400+ sq ft beautiful, private use, low maintenance rooftop patios nestled into the tree line of Lynnwood's mature streetscape, are an added bonus that will keep tenants for the long term. Lower Garden Suites: the lower garden suites, of approx 600 sq ft plus the private use lower patios of 240 sq ft, have great, private access. The patios are fully serviced with gas and water creating cozy personal spaces begging for an individual touch. The interior of the units feature very similar high quality finishes noting hardwood is substituted for waterproof vinyl as the units are heated by radiant floor heat, driven by a Navien combi-boiler/ HRV. The bathroom is spacious, features more tile work and a soaker, acrylic bathtub. The Delta fixtures is carried from the upper units as is the custom lighting. The property is further complimented by a detached, 5 car, heated and shared garage; stalls are assigned to the 5 upper townhomes only; lower garden suites are street parking of which there is plenty. The property currently qualifies for CMHC MLI Select financing but if we dont get a reasonable offer in the next 30 days, we will be condominiumizing the property and selling the units separately. The property is zoned HGO so the lower units can be sold separately (read- 10 titles). For the savvy investor, this investment is priced to allow solid appreciation into the completion of the Green Line while holding with positive cashflow under CMHC financing. Draft Condo plan and all draft condo documents are included with the sale. What an opportunity! See the timeless value that Heirloom Homes delivers in the highly prospective community of Lynnwood/ Ogden! More details
    Listed by Easy List Realty
    LISTING DETAILS
    Mohit Dhilon

  • 7716 bowness Road NW in Calgary: Bowness Multi Family for sale : MLS®# A2266883

    7716 bowness Road NW Bowness Calgary T3B 0H1
    Main Photo: 7716 bowness Road NW in Calgary: Bowness Multi Family for sale : MLS®# A2266883

    7716 bowness Road NW Calgary T3B 0H1 Bowness

    $2,900,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2266883
    This is a great investment opportunity in the sought after community of Bowness. This well maintained townhouse complex with condo titles, and NO common area to maintain or pay extra utilities resulting in lower expenses has excellent curb appeal with durable stucco and is very centrally located on bowness road having great access to all the community amenities. Higher quality construction compared to other rental buildings - granite counters, stainless steel appliances, hardwood floors and attractive stained cabinets. You have a superior suite mix with ( 6 –2 bdrm, which range from 850, 900, & 1,300 sqft sizes). (2 – 3 bdrm units which, are 1,350 sqft) units have 1.5 baths or 2.5 baths in some styles!. The tenants love the HEATED UNDERGROUND parkade with 10 parking stalls, PLUS a heated driveway. Lower cost of operating with efficient boiler heating and tenants pay electricity. This 8 unit inner city gem is located within walking distance to transit all amenities, restaurants, public library and one of the most beautiful parks in Calgary - Bowness Park. With a quick commute to work downtown, this asset is accessible for tenants that do not drive. This property also features separate titles for sale in future or you could live in one unit and live mortgage free! Contact your favorite realtor to explore this property today. More details
    Listed by Comox Realty
    LISTING DETAILS
    Mohit Dhilon

  • 1321 18 Avenue in Didsbury: Multi Family for sale : MLS®# A2266896

    1321 18 Avenue Didsbury T0M 0W0
    Main Photo: 1321 18 Avenue in Didsbury: Multi Family for sale : MLS®# A2266896

    1321 18 Avenue Didsbury T0M 0W0

    $2,575,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2266896
    Your next investment is waiting for you in the stable high-rental demand community of Didsbury! This condo-grade building which has 12 separate titles allowing for flexibility for investors, high end finishings and generously sized units, plus common room for tenants to enjoy. Building features an elevator which allows for all demographics to conveniently access their units which are 8 - 2 bed 1 bath units and 4 1 bed plus den which can be used as office or flex room. In floor heating keeps the building heating efficient, extra sound insulation in walls helps the tenants stay comfortable, with full parking + street parking tenants and guests can always find a space. Robust mechanical design including backup power for 30 minutes in case or emergency, as well as a sprinkler system for fire suppression. This sale also INCLUDES the adjacent lot in the price and development approvals for a 17 unit building, which could be amended to suit a different floor plan subject to additional municipal approval! Contact your favorite agent to get additional detail. Seller may consider Vendor financing OAC*. More details
    Listed by Comox Realty
    LISTING DETAILS
    Mohit Dhilon

  • 0002 2A Highway in Ponoka: A-3C Retail for sale : MLS®# A2271005

    0002 2A Highway A-3C Ponoka T4J 1M1
    Main Photo: 0002 2A Highway in Ponoka: A-3C Retail for sale : MLS®# A2271005

    0002 2A Highway Ponoka T4J 1M1 A-3C

    $1,250,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2271005
    Build. Type:
    Commercial Mix
    Trusted & Established Franchise Gas Station & Convenience Store — $1,250,000 (Includes Land & Building)& Running Business, equipment Located on busy Highway 2A in Alberta, just 2 hours from Calgary and 1 hour from Edmonton, this high-performing gas station and convenience store is back on the market after the previous buyer’s financing fell through — giving you another chance to secure this incredible opportunity. This is a turnkey, profitable business with solid financials and strong cash flow, ideal for both investors and owner-operators looking to step into a well-established operation. Over $1M in annual sales Includes a popular fried chicken franchise — at no extra cost Equipped with new, modern gas pumps Multiple income streams: fuel, store, and food sales No lease — you own the land and building outright Huge growth potential — add a car wash or QSR to increase profitability This well-known business benefits from consistent local and highway traffic, delivering six-figure income with room to grow. Full training provided | Motivated seller ready for a smooth transition and quick sale More details
    Listed by Real Estate Professionals Inc.
    LISTING DETAILS
    Mohit Dhilon

  • 830 Main Avenue W in Sundre: Hotel/Motel for sale : MLS®# A2270388

    830 Main Avenue W Sundre T0M 1X0
    Main Photo: 830 Main Avenue W in Sundre: Hotel/Motel for sale : MLS®# A2270388

    830 Main Avenue W Sundre T0M 1X0

    $1,100,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2270388
    Build. Type:
    Free-Standing
    Long-term established Motel business. 25-unit motel on the western edge of Sundre, AB. Located at the intersection of Highway 27 and Highway 22. Manager Suite. There are 2 acres at the front of the property with highway exposure that could be developed for possible Mini storage, additional motel units, or commercial sales. Steady income and an easy-to-operate business. Town utilities are being applied for. The owner could train if required. Seller will consider some seller financing OAC. Listing agent must present at all showings More details
    Listed by RE/MAX Landan Real Estate
    LISTING DETAILS
    Mohit Dhilon

  • 4313R 84 Street NE in Calgary: Industrial for sale : MLS®# A2271505

    4313R 84 Street NE Calgary T1Y 7H3
    Main Photo: 4313R 84 Street NE in Calgary: Industrial for sale : MLS®# A2271505

    4313R 84 Street NE Calgary T1Y 7H3

    $4,950,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2271505
    Vendor Take Back VTB mortgage up to 25% OAC. 10.45 Acres of compact gravel Zoned Direct Control which follows I-O guidelines (except for salvage yard). The property does have a residential home which is currently being rented to the caretaker of the property. Currently generating a CONSISTENT MONTHLY REVENUE (call to discuss) with additional space for continued growth. Electronic key pad gate, security cameras and lighting throughout the yard. This area is surrounded by development with Homestead to the North, Conrich to the East, Princeton by Truman Homes to the south and established Monterey Park to the West. Excellent holding property with great revenue. Optional Vendor Take Back VTB mortgage up to 25% OAC. More details
    Listed by CIR Realty
    LISTING DETAILS
    Mohit Dhilon

  • 1821 17 Street SW in Calgary: A-015 Multi Family for sale : MLS®# A2273727

    1821 17 Street SW A-015 Calgary T2Y 3E5
    Main Photo: 1821 17 Street SW in Calgary: A-015 Multi Family for sale : MLS®# A2273727

    1821 17 Street SW Calgary T2Y 3E5 A-015

    $2,820,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2273727
    Build. Type:
    Low Rise (2-4 stories)
    STONESET is in an excellent location in the  SW inner-city community of Bankview. All 12 units and the common areas and mechanical equipment were upgraded and completed in 2021-2022. Upgrades include new sound proofing, new insulation, new windows, new wiring, new plumbing, new heating system, new kitchens, new bathrooms, new flooring with very tasteful  decor throughout. This is a a must see turn key long term investment. PLEASE NOTE PROFORMA in supplements that include terms of the mortgage that must be assumed. More details
    Listed by Michael Fleming Realty Corp.
    LISTING DETAILS
    Mohit Dhilon

  • 4830 4 Avenue in Edson: Hotel/Motel for sale : MLS®# A2279110

    4830 4 Avenue Edson T7E 1T9
    Main Photo: 4830 4 Avenue in Edson: Hotel/Motel for sale : MLS®# A2279110

    4830 4 Avenue Edson T7E 1T9

    $1,390,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2279110
    Strategically located at the high-visibility junction of Hwy 16 and the center of town, this well-maintained 38-room motel is a premier hospitality asset in one of Alberta’s most resilient economic hubs. Built with durable concrete block construction, the property offers a versatile room mix, including 6 kitchenette units and a spacious 3-bedroom owner’s residence perfect for an on-site operator. With the current owners retiring, this turnkey business is primed for a seamless transition and offers an exceptional 50% seller financing option, making it a rare, high-yield opportunity for investors looking to capitalize on Edson's industrial boom. More details
    Listed by CIR Realty
    LISTING DETAILS
    Mohit Dhilon
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Data was last updated January 28, 2026 at 08:05 AM (UTC)
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

These sample commercial properties highlight the variety of financing structures available in Alberta. Industrial and retail assets tend to qualify for the strongest DSCR-based lending, medical and office properties offer stable cash flow for long-term amortizations, and mixed-use buildings may qualify for CMHC-backed financing. Reviewing real listings helps investors understand how property type, tenant mix, and lease terms directly influence mortgage qualification and ROI potential.

Financing a commercial property in Alberta becomes significantly easier with a clear understanding of DSCR, down payments, amortization rules, and lender expectations. Whether you're securing a mortgage for an investment building or purchasing a property for your own business, Alberta’s lending environment offers competitive options designed to support long-term growth.

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Find Calgary & Alberta commercial properties for sale/lease with real-time MLS® listings. From retail to industrial, warehouses and development land, explore opportunities across Calgary, Airdrie, Chestermere, and beyond.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.