Commercial financing

Part of Mortgages

Commercial property financing can support purchasing business premises, construction or renovations. Compare the mortgage term separately from amortization, and ask what happens at renewal. BDC and TD describe different repayment and prepayment structures, so compare the full agreement as well as the quoted rate.

Compare the 4 listed products below. Open a product for its terms and source links. Missing terms are not confirmed.

TD Canada Trust

Business Mortgage

Financing for buying or improving business property, with different prepayment conditions for fixed and variable rates.

Prepayment: Variable-rate principal repayment without penalties; fixed-rate conditions differ.
Property types: Commercial and mixed commercial/residential properties.
Uses: Property purchase, expansion or renovation.

Full details for Business Mortgage (opens in new tab)

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BDC

Commercial Real Estate Loan

Financing to purchase, build or renovate business premises. Initial interest-only payments may defer principal repayment, subject to conditions.

Amortization: Up to 25 years, subject to approval.
Eligibility: Canadian business with at least 24 months generating revenue and a good credit track record.
Initial payments: Interest-only payments for up to 36 months, subject to conditions.

Full details for Commercial Real Estate Loan (opens in new tab)

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Scotiabank

Scotia Leasing

Scotiabank business equipment leases from two to seven years.

Structure: Capital and operating leases
Minimum loan: $50,000 transaction size
Term: 2 to 7 years
Currency: US dollar leases available (some restrictions apply)

Full details for Scotia Leasing (opens in new tab)

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Scotiabank

Scotiabank Equipment Loan Financing

Commercial equipment loans for vendor purchases or refinancing owned assets.

Maximum amount: Up to 100% financing
Uses: Equipment from vendors or refinancing assets already owned
Term: Flexible, including seasonal and skip payments; fixed and/or variable rates
Currency: CAD and/or USD

Full details for Scotiabank Equipment Loan Financing (opens in new tab)

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Costs to compare

Budget for lender charges, appraisal, legal work, property due diligence and project overruns. Ask for prepayment costs and any charges to discharge or refinance the financing.

Risks and restrictions

Interest-only payments defer principal, not erase it. Test affordability under slower sales, higher operating costs and a less favourable refinancing environment. Confirm property and personal security obligations.

Common questions

Do interest-only payments reduce principal?

No. They cover interest while the borrowed principal remains outstanding.

Can a commercial loan be repaid early?

Check the agreement. TD publishes different prepayment features for fixed- and variable-rate business borrowing.

Sources for this guidance

What to check before choosing commercial financing

Rate and term

Understand fixed versus variable rates and distinguish the mortgage term from amortization.

Flexibility

Check prepayment privileges, portability and refinancing conditions.

Other costs

Ask about penalties, appraisal fees, legal costs and discharge fees.

Your rate and approval depend on lender criteria and your circumstances. Confirm provincial legal costs and requirements.

Before you visit a provider

Confirm current fees, rates and eligibility directly with the provider. Product terms can change over time. A listed product is not a recommendation or a promise of approval.

Availability must be confirmed for your province or territory. If product-specific location or eligibility information is missing, it is not confirmed.

For further guidance, visit Financial Consumer Agency of Canada.

This is general information, not personalized advice. Read our editorial policy and affiliate disclosure.