Mezzanine Financing Canada

Mezzanine sits between the first mortgage and common equity. It boosts total proceeds when senior leverage is capped or when you want to preserve equity for other projects. We size the facility to real cash flow, collateral, and exit timing, then bring targeted quotes that match your timeline and risk.

Who We Serve

• Sponsors acquiring income assets who need additional proceeds

• Developers bridging the gap on construction or take-out

• Owners recapitalizing to fund capex, leasing, or new acquisitions

• Family offices and operators seeking non-dilutive growth capital

Properties We Finance

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

• Industrial: Distribution, flex, strata and condo bays, light manufacturing

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

• Retail & Mixed-Use: Plazas and main-street retail with residential above

• Select specialty: Self-storage and certain housing types with stable demand

Eligible Scenarios

• Acquisition top-up: Increase proceeds where senior is constrained

• Construction gap: Fund part of hard or soft costs alongside equity

• Value-add: Finance renovations, TI and LC, and lease-up

• Recap and growth: Release capital to scale while keeping the first mortgage in place

How Mezzanine Financing Is Structured

We coordinate with the senior lender and align terms to your exit.

• Position: Second charge or pledge of ownership interests with an intercreditor agreement

• Term: Commonly 12 to 36 months with extension options

• Payments: Interest-only, current pay with possible partial accrual or PIK to manage cash flow

• Covenants: Practical DSCR and milestone checks; cure rights defined in the intercreditor

• Exit: Refinance with term debt or CMHC, sale, or sponsor paydown

Typical Loan Parameters and Eligibility

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

• Total leverage (senior + mezz): Often up to 75 to 85 percent of value or cost, case by case

• Pricing: Market coupon with arrangement fees and potential participation based on risk

• DSCR: Sized on a combined basis with stress testing

• Security & recourse: Subordinate security and limited or partial guarantees depending on leverage

• Sponsor profile: Relevant experience, solid net worth and liquidity, credible exit plan

Streamlined Documents Checklist

We ask for what matters and stage the rest.

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

• Reports: Appraisal, Phase I ESA as required, building condition or capex scope

• Senior debt: Current loan agreement, statement, and senior lender contact for intercreditor

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

• Plan and exit: Capex budget, leasing plan or pre-leases, refinance or sale timeline

Process and Timelines

• Initial review (1 to 3 business days): Indicative sizing, pricing, and total leverage

• Offers (5 to 10 business days): Targeted quotes from mezz funds and balance-sheet lenders

• Diligence and intercreditor (2 to 6 weeks): Valuation, environmental as needed, legal, and senior coordination

• Funding: Conditions satisfied, intercreditor executed, security registered, funds advanced

Why Work With Us

• Capital stack expertise: We align senior, mezz, and equity so documents work together

• Breadth of lenders: Access to active mezz funds and institutions across Canada

• Clarity and speed: Straight answers on pricing, rights, and remedies with early issue spotting

• National coverage: Major metros and strong secondary markets