Calculators For investors
For investors
For investors
Does the building cover its loan?
DSCR is the one ratio a commercial lender leans on: the building's income against its mortgage. Check a deal you already have in mind, or work backwards to see how much a building's income can borrow. Canadian semi-annual mortgage math, the way lenders do it.
The numbers
Preloaded with an example. Everything stays on your device.
build it honestly, before mortgage
$
debt service, principal + interest
$
$
%
years
the minimum they require
x
%
yrs
optional, to see the down payment gap
$
Debt service coverage
0.00x
Enter your numbers above.
Annual NOI$0
Annual debt service$0
DSCR0x
Typical 2026 ranges (every lender differs)
Most commercial lenders want about 1.20x or better. The big banks typically want 1.25x to 1.30x, and they stress test above your contract rate. For qualifying 5 plus unit residential, CMHC MLI Select programs can go to about 1.10x.
Reading it: DSCR is the building paying its own loan. Below about 1.20x, conventional financing gets hard, and the fixes are more down payment, higher rents, or leaner expenses.
Maximum supportable loan
$0
at a 1.25x floor, 5.5%, over 25 years
Lenders size a commercial loan from the building's income, not from your salary. This is the most that income can support at your floor.
Annual NOI$0
Max annual debt service$0
Max monthly payment$0
Max loan the income supports$0
Purchase price$0
What the income supports$0
What a 25% down floor allows$0
Minimum equity you need$0
Two limits, the larger one wins
Conventional commercial usually needs 25 to 35 percent down (a loan of 65 to 75 percent of value). The building's income sets a second ceiling through the DSCR floor. Your real minimum down is whichever of the two is bigger.
Jay Patel
REALTOR® · GTA
Weighing a commercial deal? Send me the building's numbers and I will help you read whether it covers its own loan, and what a lender is likely to say. A commercial broker confirms the real borrowing power.
A quick, honest note. This is an educational estimate, not financing advice. Lender policies, stress test rates, and how a lender normalizes a building's income all differ, so the DSCR floor and rate you actually get depend on the lender, the asset, and the day. A commercial mortgage broker confirms your real borrowing power. Do not treat this as a loan approval, and note it covers property income only, never a business valuation.