Refinancing a commercial property can free up equity, lower costs, or replace maturing debt. Here is how the process works in Ontario and what to prepare.
Why owners refinance
Common reasons include accessing built-up equity for new investments, replacing a maturing loan, lowering the rate or payment, consolidating debt, or funding improvements. Refinancing can also move a property from short-term bridge financing into permanent terms.
What lenders assess
As with a purchase, lenders look at the property’s income and debt service coverage, current value, lease profile, and your financial strength. An updated appraisal and rent roll are usually required.
Timing and maturity
Start well before your existing loan matures. Rates and market conditions change, and giving yourself lead time avoids being forced into a rushed renewal or, worse, a default situation.
Getting the best terms
Different lenders price the same property differently. Comparing banks, credit unions, insurers and private lenders — and structuring the deal around your goals — is how you secure the strongest terms.
How Gurpinder Gaheer can help: Commercial Mortgage Financing in Ontario · Book a free 30-minute consultation