As Calgary’s commercial real estate (CRE) market continues to gain momentum in 2025, many investors and business owners are exploring ways to secure financing for their next property purchase or development. Whether you’re a first-time buyer, an established investor, or an owner-operator looking to expand, understanding the financing landscape in Calgary is crucial for making informed and strategic decisions.
In this post, we break down the most common financing options available for commercial real estate in Calgary, key terms to understand, and how to choose the best fit for your business goals.
Common Financing Options in Calgary’s CRE Market
1. Commercial Mortgage Loans
The most widely used loans for acquiring or refinancing income-generating properties such as office buildings, strip malls, and industrial warehouses. Typically, lenders will finance up to 75% of the appraised property value, with amortization periods ranging from 15 to 25 years.
CMHC-insured loans may allow for up to 85% financing and longer amortization (up to 40 years), particularly for multi-family residential investments.
2. CMHC-Insured Loans
- Up to 85% LTV
- Amortization periods up to 40 years
- Lower interest rates due to CMHC backing
- CMHC insurance is generally available only if the non-residential portion is less than 25% of floor area and revenue. For mixed-use properties exceeding this, standard commercial loans apply.
- Only multi-unit residential, retirement, student, and certain care facilities qualify for CMHC insurance-not all commercial property types
3. Construction Loans
Used to finance new developments or major renovations. Disbursed in stages and often convert to a mortgage post-completion.
4. Bridge Loans
Short-term, interest-only loans designed to bridge the gap between transactions or until long-term financing is secured.
5. Demand Loans
Short-term loans that can be repaid at any time without penalty—but can also be called by the lender at any time.
6. Lines of Credit
A revolving credit facility for renovations, working capital, or cash flow gaps.
7. Vendor Take-Back (VTB) Financing
Seller-financed deals that help buyers cover gaps in financing.
8. Private and Alternative Lender Loans
Higher-cost loans from private lenders or MICs for borrowers who don’t qualify for traditional loans.
Financing Summary Table
| Financing Option | Typical LTV | Amortization | Best Use Case | Notes |
|---|---|---|---|---|
| Commercial Mortgage | Up to 75% (85% CMHC) | 15–40 yrs | Most commercial purchases | Best rates for strong borrowers |
| CMHC-Insured Loan | Up to 85% | Up to 40 yrs | Multi-family rental properties | Lower rates, longer terms |
| Construction Loan | Varies | Short-term | New builds/major renovations | Converts to mortgage post-construction |
| Bridge Loan | Varies | Short-term | Interim financing between deals | Higher rates, fast access |
| Demand Loan | Varies | Short-term | Short-term flexibility | Can be called at any time |
| Line of Credit | Varies | Revolving | Working capital or short-term needs | Ideal for renovations or soft costs |
| Vendor Take-Back (VTB) | Varies | Negotiated | Purchase of seller-financed properties | Often used as second mortgage |
| Private/Alt. Lender Loan | Up to 75% | Varies | Higher-risk or non-bank borrowers | Higher interest rates, flexible terms |
Tips for Securing CRE Financing in Calgary
- Know your credit: Ensure your business and personal credit scores are solid before applying.
- Get pre-approved: Pre-approval can provide leverage in negotiations and clarify your budget.
- Work with specialists: Commercial mortgage brokers familiar with the Calgary market can help you secure better terms.
- Compare lenders: Shop around for the best rates and terms across banks, credit unions, and private lenders.
- Understand total costs: Consider appraisal fees, legal costs, inspection fees, and closing costs in your financing strategy.
- Prepare strong documentation: Lenders will require financial statements, a business plan, and rent rolls or projections.
- Interest Rate Range: Commercial mortgage rates are typically higher than residential, and rates can fluctuate with market conditions.
- Loan Processing Times: Commercial deals can take longer to close (60 days to a year), which is can be a surprise to first-time buyers. Make sure you have enough cushion in your finances in the event the deal takes a significant time to close (thereby delaying profits from leased space).
Final Thoughts
The commercial real estate market in Calgary is ripe with opportunity in 2025—from revitalized inner-city retail to booming industrial parks. But securing the right financing is just as critical as finding the right property.
At Leaseco Realty, we specialize in guiding business owners and investors through the full commercial leasing and ownership process—from property search to financing strategies and deal negotiation. Whether you’re looking to buy your first retail condo or finance a growing industrial portfolio, our team is here to help.
Looking for financing guidance or a new property opportunity in Calgary?
Contact us today to speak to a professional commercial real estate broker licensed in Alberta.
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