What are commercial mortgage rates in Toronto?

Toronto commercial mortgage rates reflect national pricing — Prime + lender spread for conventional, below-market fixed for CMHC insured. Given Toronto's very low cap rates (3.5–4.5% for apartments), CMHC MLI Select's 50-year amortization is often necessary to achieve adequate DSCR.

What is the land transfer tax on commercial property in Toronto?

Toronto commercial buyers pay both Ontario provincial LTT (up to 2.5% on values over $400K) and Toronto municipal LTT at the same rate. Combined, this can be 5%+ of the purchase price on high-value commercial transactions — a significant closing cost.

Why is CMHC MLI Select critical for Toronto apartment development?

With land costs often exceeding $100,000 per door and construction costs at $300–$450+ per square foot, developing purpose-built rental apartments in Toronto without CMHC MLI Select is extremely challenging. The 95% LTV and 50-year amortization are often the margin between a viable and non-viable project.

What commercial property types are most active in Toronto?

Industrial properties in the GTA are among the most expensive and tightest-supply in North America. Purpose-built apartment development is very active. Mixed-use is dominant in transit-oriented development areas. Office faces headwinds from hybrid work trends.

How do I find a commercial mortgage broker in Toronto?

Toronto has Canada's deepest commercial mortgage broker market. LendGuide connects you with licensed commercial specialists who have direct relationships with national banks, life companies, pension funds, and CMHC.

Commercial Mortgage City Guide 🏢

Commercial Mortgage Toronto — Rates & Broker Matching (2026)

Toronto's commercial real estate market is Canada's largest and most liquid.

Apartment cap rates

3.5–4.5%

Industrial cap rates

3.5–5.0%

Market position

Canada's largest

Double LTT

Provincial + municipal

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Toronto Commercial Real Estate Market Overview (2026)

Toronto's commercial real estate market is Canada's largest and most liquid. Cap rates for apartment buildings have compressed to 3.5–4.5% — one of the lowest in North America — reflecting the city's chronic housing shortage and strong rental demand. CMHC MLI Select is particularly attractive for Toronto developers given the high land costs — 95% LTV dramatically reduces the equity required to develop purpose-built rental. Industrial properties in the GTA are among the tightest in North America.

Commercial Property Types in Toronto

Each property type has different financing terms, lender preferences, and market dynamics in Toronto.

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Apartment Buildings

Purpose-built rental apartments. Cap rates in Toronto: 3.5–4.5%. CMHC MLI Select available.

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Mixed-Use

Retail or office below, residential above. Financing terms depend on the income split.

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Retail / Commercial

Single-tenant and multi-tenant retail. Conventional 65–70% LTV. Lease quality is critical.

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Construction Loans

Ground-up development financing. Draw-based advances, interest only, converts to permanent.

CMHC MLI Select in Toronto

CMHC MLI Select is available for purpose-built rental apartment buildings across all of Canada including Toronto. The program offers up to 95% LTV and 50-year amortization — the most competitive commercial financing available in Canada.

95%

Max LTV

50 years

Max Amortization

5 residential

Min Units

Complete CMHC MLI Select guide →

Commercial Mortgage Brokers in Toronto

Why Use a Commercial Broker

Commercial mortgage brokers in Toronto have access to national banks, life insurance companies, pension funds, credit unions, and CMHC — sources you can't easily access directly. For CMHC insured programs, an experienced broker is essential.

What to Look For

Look for brokers with specific commercial real estate experience — ideally in your property type. Ask how many commercial transactions they complete per year and whether they have experience with CMHC MLI Select applications if relevant.

The LendGuide Difference

LendGuide connects you with licensed commercial mortgage specialists in Toronto who have deep knowledge of the local market. Submit one inquiry — we match you with the right broker for your specific property and financing need.

Commercial Mortgage Toronto — FAQ

Common questions from commercial real estate investors and developers in Toronto.

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Connect with a licensed commercial mortgage broker specialising in the Toronto market. Free consultation, no obligation.

Related Resources

Commercial Mortgage Hub →Apartment Buildings →CMHC MLI Select Guide →Construction Loans →Mixed-Use Properties →