Commercial Financing
Structured Financing for Income-Producing Real Estate
Commercial financing is different from residential lending.
It’s not based solely on personal income.
It’s based on property performance, risk, and structure.
At Spire Mortgage, our Commercial Division works with investors, developers, and business owners across Alberta and Western Canada to structure financing for income-producing and business-use properties.
This page is designed to help you understand:
• What commercial financing is
• How lenders assess deals
• What to expect during underwriting
• How we support you through the process
THE WHO
WHO IS THIS FOR?
• Investors acquiring multifamily
• Business owners buying buildings
• Developers
• Refinance clients
• Portfolio expansion
ASSET CLASSES:
• Multi-unit residential
• Retail & office
• Industrial & warehouse
• Land & development
• Mixed-use
• Hospitality
• Construction & bridge
• Owner-occupied commercial
Commercial lending is driven by income, risk, and structure.
Unlike residential mortgages — where personal employment income is the primary focus — commercial underwriting evaluates the property’s performance and its ability to service debt.
Here’s how lenders think.
Income & Valuation
-
Net Operating Income is the property’s income after operating expenses — but before mortgage payments.
It is calculated as:
Rental Income
minus
Operating Expenses
equals
NOIThis number tells lenders how much income the property actually produces.
-
DSCR measures whether the property generates enough income to cover its mortgage payments.
It is calculated as:
NOI ÷ Annual Mortgage Payments
Most lenders require a DSCR between 1.20 and 1.35.
This means the property must generate 20–35% more income than the annual debt obligation.
If the DSCR does not meet the lender’s threshold, loan size is reduced — regardless of borrower income.
-
A cap rate is used to estimate property value based on income performance.
Value is typically calculated as:
NOI ÷ Cap Rate = Estimated Value
Cap rates vary by asset class, location, and market conditions.
Lower cap rates generally indicate stronger markets and lower perceived risk.
Structure & Leverage
-
Commercial financing is structured differently than residential lending.
While each deal is unique, typical parameters may include:
• 65%–75% Loan-to-Value
• 20–30 year amortizations
• 3–10 year terms
• Fixed or floating rate options
• Personal guarantees in many casesLoan amounts are determined by cash flow strength, property type, and overall risk profile — not solely by borrower income.
The goal is to align leverage with long-term asset performance.
Operating Expenses
equals
NOIThis number tells lenders how much income the property actually produces.
Documentation & Timelines
-
• Current rent roll
• Operating statements (2–3 years)
• Property tax statements
• Lease agreements (if applicable)
• Environmental reports (when required)
• Personal or corporate financial statements
• Net worth statementPreparation upfront improves lender confidence and shortens review time.
Operating Expenses
equals
NOIThis number tells lenders how much income the property actually produces.
-
• Stabilized income-producing properties: approximately 30–60 days
• Land, construction, or repositioning projects: longer depending on complexityCommercial financing is structured and methodical — not instant approval.
Our Approach,
Our Approach,
Commercial financing works best when it’s structured early and approached thoughtfully.
At Spire, we don’t rush applications to lenders. We take the time to understand the property, the numbers, and the long-term plan behind the purchase or refinance.
Our role is to bring clarity to the process, so you understand how lenders will evaluate your deal before it ever reaches underwriting.
We focus on:
Relationship-based conversations
Transparent guidance
Realistic loan sizing
Nationwide lender access
Alberta-focused perspective
Full support through closing
We start with your objectives and work backward from there.
Clear discussion around lender expectations, risks, and realistic outcomes.
We review income and structure upfront to determine what is supportable.
Banks, credit unions, commercial lenders, and alternative sources.
Understanding local markets, asset classes, and regional conditions.
From initial review to lender presentation and documentation coordination.
Meet our Commercial Mortgage Specialist
About Michael Huse, CFA
Commercial & Multifamily Mortgage Specialist – Spire Mortgage
Michael Huse brings a finance-first mindset to commercial and multifamily lending, not spreadsheets and jargon, but real understanding of how lenders see properties and cash flow.
Before focusing on mortgages, Michael earned his Chartered Financial Analyst (CFA) designation, a globally respected mark showing a deep grasp of financial analysis, risk, and investment performance, a solid foundation for commercial underwriting and deal structuring.
At Spire Mortgage, Michael helps Alberta investors and business owners move beyond residential lending into commercial property with confidence. He’s fluent in how lenders assess deals, from net operating income and DSCR to valuation and market context, and he uses that lens to guide financing that makes sense, not just “gets approved.”
What sets Michael apart isn’t just his qualifications, but how he thinks: methodically, transparently, and with an eye toward long-term portfolio success. He’s passionate about helping clients scale smarter, whether they’re buying their first multifamily investment or refinancing a growing commercial holding.
Off the clock, Michael is a family man, husband and a proud dad, and he brings that grounded perspective into every conversation. His approach isn’t about flashy claims; it’s about steady guidance and honest talk that helps you make informed financing decisions.
We’re expanding our commercial financing toolkit, including NOI, DSCR, and cap-rate estimators.”
Lets Explore Your Commercial Options
Every commercial property and every financing structure is different.
If you're considering purchasing, refinancing, or developing income-producing property, we're happy to review your project and walk through how lenders will evaluate the opportunity.
A short conversation can help clarify structure, documentation requirements, and realistic financing options.