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Find out where your deal stands. Enter your property's numbers and see your debt service coverage ratio instantly — no email required.
Most institutional commercial lenders in Canada want to see 1.25 or higher — meaning the property's income covers the mortgage payment with 25% to spare. Multi-unit residential properties can sometimes qualify lower, around 1.10–1.20. A ratio under 1.00 means the property doesn't cover its own debt, and a deal there usually needs to be restructured rather than declined outright. Read the full breakdown in What DSCR Do You Need to Qualify for a Commercial Mortgage?
It's a solid starting estimate using the same formula lenders use, but final numbers depend on each lender's specific treatment of expenses, vacancy, and amortization. Use it to get oriented, then contact Patrick Sawler for an exact read on where a deal stands.
Property taxes, insurance, utilities, repairs and maintenance, management fees, and a vacancy allowance. It does not include the mortgage payment itself or personal expenses unrelated to the property.
Not necessarily. A lower loan amount, a longer amortization, additional security, or a lender further down the alternative/private spectrum can often make a marginal ratio work.