Rates and Fees

Interest rates

Interest rates on commercial, industrial and construction financing can vary and are most often based on the individual merits of the transaction. There are primarily 3 criteria that are evaluated:

1) Property type, use and location
2) Borrower’s covenant and ability to repay
3) The purpose of the loan

Generally speaking, transactions fall into 3 categories as follows:

“A” deal – This is a transaction which the property, borrowers and purpose of the loan requested all check out favourably. On smaller transactions up to $3,000,000.00, rates in line with posted bank rate can be expected. On transactions over $3,000,000.00, Canada Bond rate plus .25 basis points is a good starting point.

“B” deal – this is a transaction where perhaps only two of the three criteria check out. Generally speaking rates of about 2% over posted bank rate are not uncommon.

“C” deal – this is a transaction where the main focus is the value and security of the real estate, sometimes referred to as an equity loan. Much less attention is given to covenant or purpose of the loan. Private equity rates can run in the 8%-10% range.


Fees are negotiated on a transaction by transaction basis but usually are not less than 1% of the loan amount.

Qualifying Properties

Land acquisition and site servicing
Construction financing
Mezzanine loans and equity partners
Industrial & Commercial use buildings
Residential apartment building
Motel and Hotel
Gas stations and car wash
Churches and other places of worship
Resorts and golf courses
Retirement home and care facilities
Vacation property
Unique ICI situations
Residential homes financed to 85% of property value

Due to fluctuating financial markets, mortgage rates change often! Contact us today to receive current rates and a complimentary in-depth quote and overview of current market conditions affecting the mortgage market.

Bank Rates Term OUR RATES
4.55 % 6 month closed 3.65 %
3.50 % 1 year closed 2.64 %
3.75 % 2 year closed 3.25 %
4.35 % 3 year closed 3.70 %
5.14 % 4 year closed 3.99 %
5.44 % 5 year closed 3.84 %
5.95 % 6 year closed 4.70 %
6.34 % 7 year closed 5.00 %
6.65 % 10 year closed 5.30 %
3.00 % Prime 3.00 %

* Insured mortgage rates, subject to change. Conventional and refinance rates may be higher. OAC. E&EO