Commercial Financing
Real Estate. Business. Investment. Structured Properly.
Commercial financing is different from residential mortgages.
It’s not about your personal income alone, it’s about the property, the cash flow, and how lenders assess risk.
At Spire Mortgage, our Commercial Division helps property owners, investors, and business operators navigate commercial financing with clarity and strategy.
Whether you're buying, refinancing, developing, or repositioning a property, we help you understand your options and structure your financing properly from the start.
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.
WHAT IS COMMERCIAL FINANCING?
If you’ve only dealt with residential mortgages, commercial lending feels like a different world.
What Lenders Focus On
- The income the property generates
- The stability of tenants and leases
- Market fundamentals
- Your experience and financial strength
Underwriting Mindset
It’s less about a quick approval — and more about thoughtful underwriting.
And that’s a good thing.
Done properly, commercial financing becomes a strategic tool — not just a loan.
Asset Classes We Work With
- Multi-unit residential
- Retail plazas & strip centres
- Office buildings
- Industrial & warehouse
- Mixed-use properties
- Hospitality
- Owner-occupied commercial
- Land acquisitions
- Development projects
- Construction & bridge financing
Each asset class carries its own lending approach. Our role is to help align your project with lenders who understand that asset type.
Built for Investors & Business Owners
- Expanding your portfolio
- Refinancing to reposition capital
- Purchasing your first income property
- Developing land
- Securing space for your operating business
Commercial financing should support your long-term plan — not strain it.
We take the time to understand the property, the numbers, and your broader goals before exploring lender options.
Our Approach,
Our Approach,
WHAT IS COMMERCIAL FINANCING?
Commercial mortgages are used to finance income-producing or business-use properties.
Unlike residential lending (which focuses primarily on your employment income), commercial lenders focus heavily on:
Net Operating Income (NOI)
What it is:
NOI is the property’s income after operating expenses, but before mortgage payments.
It’s calculated as:
Rental Income – Operating Expenses = NOI
Why it matters:
In commercial lending, the property has to pay for itself. Lenders look at NOI to determine how much debt the property can realistically support. Strong, stable NOI gives you stronger financing options.
Debt Service Coveragte Ratio (DSCR)
What it is:
DSCR measures whether the property generates enough income to cover its mortgage payments.
Formula:
NOI ÷ Annual Mortgage Payments
Most lenders require a DSCR between 1.20 and 1.35.
Why it matters:
If the property doesn’t produce enough cash flow, the loan doesn’t work, regardless of your personal income. DSCR is one of the most important approval metrics in commercial financing.
Loan-To-Value (LTV)
What it is:
LTV compares the loan amount to the property’s value.
Example:
$1,500,000 loan on a $2,000,000 property = 75% LTV
Why it matters:
Commercial lenders typically lend between 65%–75% LTV, depending on the asset. The lower the leverage, the lower the lender’s risk, and often the stronger the approval..
What it is:
The category of real estate being financed, such as multi-unit residential, retail, office, industrial, hospitality, or land.
Why it matters:
Different property types carry different risk profiles. For example, a stabilized apartment building is typically viewed differently than a single-tenant retail unit or a development project. Lender appetite changes by asset class.
Property Type
What it is:
The economic health and stability of the area where the property is located.
Why it matters:
Vacancy rates, population growth, employment trends, and economic diversity all influence lender confidence. A strong, stable market often supports better financing terms than a soft or declining one.
Market Strength
What it is:
Your background managing properties, running businesses, or completing similar projects.
Why it matters:
Commercial lenders look beyond the property, they assess who’s operating it. Experienced borrowers often receive smoother approvals, especially for larger or more complex projects.
Borrower Experience
Commercial lending is a different kind of math.
In residential, the story is mostly about you. In commercial, it’s about the property—its income, expenses, and how safely it carries the debt. Our job is to help you understand the moving pieces (NOI, DSCR, cap rates, timelines), then line up lenders that fit your deal.
If you’re early in the process, that’s fine. A five-minute “does this even pencil out?” call can save you weeks later.
Asset classes we work with
No minimums. No hype. Just a clean list of the categories we finance.
Multi-unit residential
Small to mid-sized apartments and rental portfolios.
Retail & office
From single-tenant to multi-tenant properties.
Industrial & warehouse
Storage, distribution, light industrial, and more.
Owner-occupied commercial
Financing for the building your business operates from.
Mixed-use
Residential + commercial income under one roof.
Hospitality
Hotels and related assets (lender criteria varies widely).
Land & development
Serviced/unserviced land, planning-stage projects.
Construction & bridge financing
Shorter-term solutions when timing matters.
How commercial financing works
Here’s the plain-English version. Not a textbook. Not a pitch. Just how lenders actually look at deals.
1) NOI: the property’s “true” income
- Start with gross income (rents + other revenue).
- Subtract real operating expenses (taxes, insurance, maintenance, management, utilities, reserves).
- That result is Net Operating Income (NOI).
2) DSCR: breathing room matters
- DSCR = NOI ÷ annual debt payments.
- Many lenders want 1.20–1.30+ depending on asset type.
- Translation: the property should still be okay if expenses jump or vacancy shows up.
3) Cap rates: value is tied to income
- Cap rate connects NOI to value: Value ≈ NOI ÷ Cap Rate.
- Two identical buildings can value differently based on location, tenant strength, and risk.
- Lenders pay attention to whether value assumptions are realistic.
4) Timelines & documentation
- Expect more documents than residential (rent roll, leases, financials, expenses).
- Expect more steps (appraisal, environmental considerations, lender due diligence).
- Plan for 30–60+ days depending on complexity.
What we do as the broker
The best commercial approvals are built before the lender ever sees the file. We help you pressure-test the numbers, make sure the story is complete, and place the deal with lenders who actually lend in that space.
Think of it like going into a meeting with your accountant: the more organized the file, the smoother the outcome.
What we don’t do
We don’t “sell” lenders on a file with smoke and mirrors. Commercial underwriting is too detailed for that. If there’s a weak spot, we’d rather name it early and build around it—than pretend it isn’t there.
That’s usually the difference between a deal that closes and one that drifts.
Example financing scenarios
These are fictional but realistic examples to show how lenders typically frame a deal. Your numbers will vary by property type, lender, and strength of income.
12-unit apartment purchase (example)
- Purchase price
- $2,400,000
- Estimated loan (75% LTV)
- $1,800,000
- Target DSCR
- 1.25
- Amortization
- 25 years
- Term / rate type
- 5-year fixed (example)
- What can change this
- NOI, vacancy, market rents
Retail strip centre refinance (example)
- NOI
- $210,000
- Cap rate assumption
- 7.0% (example)
- Implied value (NOI ÷ cap)
- $3,000,000
- Estimated LTV
- 70%
- Estimated loan amount
- $2,100,000
- What can change this
- Tenant profile, lease terms, expenses
Already investing in real estate?
If you’re building (or already running) a portfolio, our Real Estate Investors Guide is a good starting point. It’s built for real-world decisions: cash flow, qualifying, and next moves.
Real Estate Investors Guide
Use this as your “grounding document” before you go deep into underwriting and lender conversations.
Open the Real Estate Investors GuideCommercial Desk
Commercial support led by Michael, backed by Spire’s broader mortgage team—so you’ve got strategy, structure, and execution in one place.
Tip: use a square image (1200×1200) for clean mobile cropping.
Michael Huse, CFA
Commercial Mortgage Specialist
Michael supports investors and business owners with structured, numbers-first commercial financing guidance. Expect a clear conversation about income, risk, and lender appetite—without the fluff.
FAQs
These are the questions that come up on almost every first commercial call—so you can walk in prepared.
How is a commercial mortgage different from residential?
Residential is borrower-first (your income, credit, debt ratios). Commercial is property-first (NOI, DSCR, tenant stability, and market risk). Your personal strength still matters, but the property’s ability to service debt is usually the main event.
How do lenders determine the loan amount?
Typically a mix of (1) DSCR sizing based on NOI, (2) maximum loan-to-value for the asset class, and (3) lender risk tolerance. The smallest of those “wins.”
What documents should I expect to provide?
Rent roll, leases, operating statements, expenses, property tax info, and borrower financials are common. For purchases, add the purchase contract and often a detailed appraisal process.
How does DSCR work in plain English?
It’s the lender asking: “If the mortgage payments are $1, do we have $1.20–$1.30 of reliable income?” That buffer is what keeps small problems from becoming big ones.
Can I finance land or construction?
Yes, but structure matters. Lenders will look closely at zoning, servicing plans, the exit strategy, and how interest is managed during the build. Expect more conditions and a more detailed timeline.
Let’s explore your commercial options.
If you’ve got a property in mind—or you’re trying to figure out what you can realistically finance—start here. We’ll ask a few smart questions, look at the numbers, and map out lender options that fit.
Prefer a quick “does this pencil out?” conversation first? That’s usually the best place to start.
Transparency: We provide general commercial financing guidance based on lender criteria. All financing is subject to lender approval and full underwriting.
Privacy: Information you share is used only to assess financing options and present your file to appropriate lenders, where applicable.
Coming soon: We’re expanding our commercial financing toolkit, including NOI, DSCR, and cap-rate estimators.