Commercial Second Mortgage Canada

Second mortgages add capital behind an existing first. They are useful for renovations, tenant improvements, lease-up, partner buyouts, or topping up proceeds at renewal. We size the facility to real cash flow and combined leverage, then bring targeted quotes that match your budget and timeline.

Who We Serve

• Owners funding capex, TI and LC, or value-add work

• Investors needing additional proceeds at purchase or renewal

• Sponsors managing lease-up or seasonal cash flow

• Partners arranging buyouts without replacing the first mortgage

Properties We Finance

• Multi-unit residential (5+): Rental buildings and mixed-use

• Industrial: Warehouses, strata bays, flex, light manufacturing

• Office: Medical and professional, suburban and downtown, condo or freehold

• Retail & Mixed-Use: Neighbourhood plazas and main-street retail

• Select specialty: Self-storage and certain housing types where fundamentals support it

Eligible Scenarios

• Capex and repositioning: Renovations, unit turns, re-tenanting

• Equity release: Unlock cash for acquisitions or business needs

• Purchase top-up: Increase proceeds when the first is constrained

• Bridge to refinance or sale: Short runway to a conventional or insured exit

How Commercial Second Mortgages Are Structured

We coordinate with the first mortgage and align terms to your exit.

• Position: Second charge registered behind an existing first; intercreditor or consent arranged as needed

• Term: Usually 6 to 24 months, interest-only, with extension options

• Leverage: Sized to combined loan-to-value and debt service; holdbacks for work or leasing where required

• Pricing: Market-based rate with transparent lender and legal fees

• Covenants: Practical reporting and milestone checks that fit your plan

Typical Loan Parameters and Eligibility

(Actual terms vary by asset, market, sponsor strength, and lender policy.)

• Combined LTV: Often up to 75 to 80 percent of as-is value, case by case

• DSCR: Sized to stabilized net operating income with stress testing on combined debt

• Recourse: Depends on leverage and risk; partial guarantees are common

• Sponsor basics: Relevant experience and adequate liquidity to carry the plan

• First mortgage cooperation: Consent or intercreditor agreement typically required

Streamlined Documents Checklist

We ask for what matters so timing stays on track.

• Property: Rent roll, trailing 12-month operating statement, leases and key amendments, tax bills, insurance

• Reports: Appraisal or broker opinion of value; Phase I ESA if required; capex scope and budget

• First mortgage: Current statement, copy of loan agreement, contact for consent

• Corporate & sponsor: Net worth and liquidity summary, org chart, recent financials and tax filings

• Exit support: Refinance plan, insured take-out path, or sale timeline

Process and Timelines

• Initial review (1 to 2 business days): Indicative sizing, pricing, and combined leverage

• Offers (3 to 7 business days): Targeted quotes from second-mortgage or mezz lenders

• Diligence and consents (1 to 3 weeks): Valuation, environmental as needed, legal, and first mortgage consent

• Funding: Conditions satisfied, security registered, funds advanced with any holdbacks set up

Why Work With Us

• Coordination with first lenders: We manage consents and intercreditor steps

• Fit-for-purpose structure: Terms that match your budget, milestones, and exit

• Broad lender access: Private funds and balance-sheet lenders across Canada

• Clarity and speed: Straight answers on pricing and covenants with early issue spotting