By : Radu Arvatescu

Ontario’s retail market is growing, creating demand for real estate investments in the sector. Retail outlet mortgages in Ontario can help you to invest in a specialist store that generates consistent revenue.

Of course, finding the perfect investment involves more than just enthusiasm. You’ll need to perform due diligence to minimize risk and forecast your potential return.

If you’ve already explored the retail market and have shortlisted some potential acquisitions, you’ll need to go through a focused process to identify risk at every level. Here are some of the most important things to remember.

Assess Building Condition

With retail outlet mortgages in Ontario, you will be obligated to make payments regardless of what happens with your investment. Short of claiming the insurance on a total loss of premises, it will be your responsibility to ensure that the building can support tenants and return a profit.

The physical condition of a building needs to be assessed before you even think about putting money down. You can research the building history to discover any previous issues. One effective way to do this is to ask to review the current and any previous insurance policies on the building. Claims will show where problems have occurred in the past. A professional building assessment will be a requirement of most lenders that provide retail outlet mortgages in Ontario.

Take Your Time

When making a significant investment in a retail outlet, the last thing you should do is rush the deal. No matter how good you feel about the potential of the site, you need to be sure that you have explored all risks and downsides.

Most real estate and lending professionals recommend that you take up to a full month to perform research. This will allow ample time to assess insurance claims, tenant leases, contracts with maintenance companies, and any other necessary documentation.

Look for red flags when you are performing due diligence. If the current building owner is unable to produce the documents or if they flat out refuse to, then there’s likely something about the property that they don’t want you to know. It’s better to walk away from an exciting deal than to get lumped with a bad investment that will incur significant costs before you sell at a loss.

Consult with an Accountant

A business plan will be key to securing the best rates on retail outlet mortgages in Ontario. This plan will also guide your financial decisions. By calculating projected revenue, you will know how much you can afford on a mortgage. You should also consider growth, the health of the retail market in Canada, and the general strength of the economy.

If this will be your first commercial real estate purchase, consider how it could affect your ability to borrow in the future. If you can only make the minimum 25% down payment on retail outlet mortgages in Ontario, you will be left with a loan worth 75% of the property value. This could exhaust your debt ratio, especially as you begin with minimal equity.

A preapproved loan won’t always be possible, but it’s worth exploring your options so that you can have more freedom to make the right deal once your due diligence is done.

Work with a Broker for the Easiest Retail Outlet Mortgages in Ontario

Just as you would pay professionals to assess a property, calculate your taxes, and work on your books, you should also seek professional assistance when buying a mortgage.

A real estate broker can offer the fastest and simplest way to get a competitive rate mortgage with favourable terms. This allows you to focus on your acquisition without wasting time on the phone to lenders.

A little planning goes a long way in the real estate world. Plan for success by performing due diligence and working with a trusted broker in Ontario.

To book an appointment to discuss your needs and learn more about how Mortgage Capital Investment can help you, call +1 289-800-4840 or email

Lowest Residential Mortgage Rates in Canada*

Term OUR RATE TD Bank Rate
3 Year Fixed/ 25 yrs 4.99%Promo 5.51%
4 Year Fixed/25 yrs 5.04% Promo 5.52%
5 Year Fixed/ 25 yrs 4.94% Promo 5.14%
5 Year Variable/ 25 yrs 6.15% Promo 6.19%
5 Year Fixed/ 30 yrs 4.99% Promo 5.72%
5 Year Variable/30 yr 6.29% 6.29%
3 Year Fixed/30yr 5.19% Promo 5.81%
**NEW RENTAL 5 Year Fixed /30yr 5.09% Promo 5.77%

Updated: May07 , 2024

* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion.Some condition may apply.Rates may vary between geographic regions and the posted rates on this website may not be available in your area.TD Bank rate used for comparable are the rate listed in the Broker Chanel Portal by TD Canada Bank at the date above. Please contact our MCI office for more details and current promotions.

LOWEST REGULAR RATES IN CANADA*   * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.

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