“How much do I need to put down?” is the first question on most commercial purchases. There is no single number — it depends on the property and lender — but here is how to think about it.
Why there is no fixed number
Unlike insured residential mortgages, commercial down payments vary with property type, cash flow, borrower strength and lender. Lower-risk, well-tenanted assets support higher leverage; special-use or vacant properties require more equity.
Typical ranges by property type
As a general rule, multi-family residential tends to allow the most leverage, while office, retail, industrial and special-use properties usually require more equity. CMHC-insured multi-family financing can significantly reduce the down payment for qualifying apartment buildings.
Ways to structure the equity
Equity can come from cash, refinancing other assets, vendor take-back mortgages, or partners. Some buyers use private or bridge financing for part of the capital stack and refinance later. The right structure depends on your timeline and goals.
Get a tailored answer
Because the requirement is deal-specific, the fastest way to know your real number is a quick review of the property and your profile against current lender appetites.
How Gurpinder Gaheer can help: Commercial Mortgage Financing in Ontario · Book a free 30-minute consultation
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