Best Commercial Property Refinance Loans for Canadian Businesses (2025 Guide)

With commercial property values on the rise and interest rates shifting in 2025, there's no better time than now to reassess your financing strategy.

Refinancing your commercial property unlocks equity to reinvest in your business, lower your monthly payments, or provide capital for renovations and growth.

In this article, we'll explore the best commercial property refinance loans in Canada and guide you through how to access the most competitive terms for you.

How Does Commercial Refinancing Work?

Commercial refinancing involves replacing your existing commercial mortgage with a new loan.

Usually this new loan offers better terms, lower interest rates, or improved flexibility.

This lets business owners realign their debt with current market conditions or evolving business goals.

Refinancing makes sense in many scenarios, including:

• Securing lower interest rates to reduce the cost of borrowing.
• Improving cash flow by lowering monthly payments or extended amortization.
• Accessing equity built up in the property to reinvest in renovations, expansion, or working capital.
• Consolidating debts into one manageable loan.

Understanding Commercial Property Refinance Rates in Canada

Commercial property refinance rates in Canada are more complex than residential mortgage rates because they're influenced by several factors.

Unlike residential loans, which are more standardized, commercial financing is personalized to each business' financial profile and the risk assessment of the lender.

Things that impact your refinance rate include:

• Creditworthiness of the borrower or business.
• Current property value and potential for appreciation.
• Lender's risk tolerance, including property type and business sector.
• Loan term and amortization, with longer terms resulting in higher rates.

One major reason commercial rates differ from residential mortgages is the higher risk and shorter average loan terms.

Commercial lenders also tend to perform more in-depth due diligence, which reflects in their pricing.

As of 2025, current commercial mortgage rates in Canada range between 5.75% and 8.50%.

This depends on the lender, property type, and borrower profile.

Interpreting these rates involves the headline number, fees, flexibility, and repayment terms to determine the true costs and benefits.

Best Commercial Property Refinance Loan Options in Canada & Ontario

If you're looking for the best commercial property refinance loans in Ontario or across Canada, several strong options are available depending on your needs. Here are some of the most relevant choices to consider:

Option 1: Commercial Real Estate Mortgage Loans (BDC & Others)

These are traditional mortgage loans ideal for refinancing a commercial property with favorable terms:

• Long amortization periods (15-25 years).
• High loan-to-value ratios (up to 100%).
• Renovation costs may be rolled into the mortgage.
• Flexible repayment structures, such as interest-only periods or principal holidays.

Option 2: Working Capital Loans

For businesses looking to access equity for operational use, this is a practical option:

• Tap into property equity to stabilize cash flow or fund expansion.
• Short-term with adaptable structures and repayment timelines.

Option 3: Leasehold Improvement Loans

If you’re leasing your commercial space, these loans can support interior upgrades:

• Made for renovations that enhance leased properties.
• May offer lower interest rates if improvements are used as collateral.

Option 4: Equipment Financing & Add-On Loans

A strong complement or refinancing, especially when expanding operations:

• Finance new machinery or equipment as part of your overall funding strategy.
• Equipment can serve as loan security.

Option 5: Demand Loans & Business Lines of Credit

These flexible financing tools are useful for short-term refinancing needs or bridging gaps:

• No fixed maturity dates (for demand loans).
• Quick access to capital with variable repayment options.
• Ideal for covering cash shortages or project-based expenses.

Each of these lenders offers distinct pros, and the right fit depends on your cash flow, growth plans, and property goals. 

What to Consider Before Refinancing Commercial Property

Before moving forward with a commercial refinance, you need to evaluate both your property and your financial position to ensure you're making the most strategic decision.

Property type influences what terms and rates you may be offered.

Your asset may be retail, industrial, office, or mixed-use. Lenders will assess the associated risks and market demand differently.

Your financial position, including cash flow, credit history, and amount of equity built up on the property, influence your refinancing options and rates.

Lenders look for strong, stable businesses with a track record of profitability and growth.

Take your long-term and short-term goals into account. Are you looking to reduce monthly expenses now, or to pull out equity to invest in business expansion?

The right refinancing solution should align with your business trajectory.

Why Work With a Commercial Mortgage Agent in Ontario or Canada

A commercial mortgage agent is vital to the process of refinancing a commercial property by providing access to a wider network of lenders and products than you'd typically find at a single bank.

This allows for a more personalized and competitive comparison of available refinancing solutions.

One of the advantages of working with a mortgage agent is their ability to unlock exclusive rates from commercial refinance lenders.

These professionals have long-standing relationships with niche and institutional lenders, giving you access to loan options that may not be available to the public.

Beyond rate shopping, a mortgage agent also offers strategic, end-to-end support.

Assessing your eligibility, handling paperwork, negotiating terms, and ensuring compliance: they serve as your advocate through the entire process.

Their experience helps you avoid common pitfalls, seize cost-saving opportunities, and secure a refinance structure that aligns with your objectives.

Making your way through the commercial refinancing landscape in Canada requires more than good timing.

With the shifting rate environment, you need expertise, access, and a personalized strategy.

Commercial mortgage agents can give you an advantage in this respect and secure the best loan for your needs.

With the right guidance, you can make moves that strengthen your business long-term.