DSCR Loans & Cash Flow Financing in Canada
Looking for a DSCR loan in Canada? We offer cash flow based mortgage financing starting from as little as 1 rental unit — qualifying you based on the property's income, not your personal employment. Whether you own a single-family rental or a 100-unit apartment building, qualification is driven by the Debt Coverage Ratio (DCR) and Net Operating Income (NOI) rather than your T4 slips. We also offer cross-border US DSCR loans for Canadians investing in American real estate — qualify entirely on rental income with 30-year fixed rates and LLC ownership.
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Qualify on Your Property's Income, Not Yours
Whether you call it DSCR, DCR, or cash flow qualification — the concept is the same. If your property's rental income covers the mortgage payment, you can qualify. We offer Canadian commercial programs and US DSCR loans so you can invest wherever the numbers work.
Cash Flow Qualification from 1 Unit
Qualify based on your property's rental income and debt coverage ratio (DCR) — the same principle as US DSCR loans. Starting from as little as 1 rental unit, if the property generates enough income to cover the mortgage payment with a margin of safety (typically DCR of 1.10-1.25), you qualify. Your personal employment income plays a secondary role or is not required at all.
Scale Without Limits
Traditional residential lenders cap your portfolio at 4-5 financed properties. Cash flow based lending has no property limits — scale as fast as you can find profitable deals. Whether you are financing your first rental unit or your fiftieth, the qualification is based on the property's income performance rather than your personal employment income.
NOI-Based Underwriting
Commercial lenders focus on Net Operating Income, vacancy rates, expense ratios, and property management quality — not your T4 slips or Notice of Assessment. Underwriting considers the property's historical financials, comparable market rents, and operating expense benchmarks. We prepare your application package with a professional pro forma that presents your property in the strongest possible light to commercial lenders.
Cross-Border DSCR Option
Want the full DSCR experience with no personal income verification at all? We offer US DSCR loans for Canadians investing in American real estate. Qualify entirely on rental income, no US credit history or Social Security Number needed, close in your US LLC for liability protection, and lock in 30-year fixed rates not available in Canada. This is the fastest-growing segment of our cross-border lending practice.
Portfolio Lending
Blanket mortgages covering multiple properties under one loan simplify your management and reporting. You qualify based on the combined cash flow of your entire portfolio rather than property by property, which often results in a stronger overall qualification. Portfolio lending is ideal for investors with 5-50+ doors who want streamlined financing, a single point of contact, and consolidated payment schedules.
All Property Types
From single-family rentals to 100+ unit apartment buildings, our team has financed cash flow deals across Ontario, BC, Alberta, Quebec, and Atlantic Canada. We understand the nuances of income-based appraisals, rent roll verification, and CMHC multi-unit insurance programs that can provide up to 95% LTV on qualifying apartment buildings with rates below conventional commercial terms.
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Cash Flow Financing Requirements
Qualifying for cash flow based financing in Canada differs significantly from residential mortgages. Here is what commercial lenders evaluate and how we position your deal for approval.
Requirements
- Cash flow financing available starting from 1 rental unit — we work with lenders who qualify on rental income for single-family homes, duplexes, and larger multi-unit properties
- Minimum Debt Coverage Ratio (DCR) of 1.10 to 1.25, meaning the property's NOI must exceed annual mortgage payments by at least 10-25%
- Professional property appraisal including income approach valuation, comparable sales analysis, and rental market assessment
- Verified rent roll showing current tenants, lease terms, rental rates, and vacancy history for the subject property
- Trailing 12-month operating statements or T2125/financial statements showing actual income and expenses for the property
- Down payment of 20-35% for conventional commercial financing, or as low as 5-15% for CMHC MLI Select insured apartment loans
- Environmental Phase 1 assessment may be required for commercial and mixed-use properties, especially those with prior industrial or gas station use
- For cross-border US DSCR loans: minimum 20-25% down, property DCR of 1.0+, no US credit or income documentation required
How We Help
- We prepare your NOI calculation, pro forma, and rent roll analysis to present your property in the strongest possible light to commercial lenders
- Our team identifies whether your deal qualifies for CMHC MLI Select insurance — which offers up to 95% LTV and 50-year amortization on apartment buildings
- For investors transitioning from residential to commercial, we guide you through the shift in underwriting criteria and help you restructure existing financing
- We provide access to portfolio lending programs that qualify your entire portfolio's combined cash flow rather than each property individually
- Cross-border investors receive end-to-end support for US DSCR loans, including LLC formation guidance, US bank account setup, and property management referrals
- Our commercial lending team has relationships with CMHC, major commercial lenders, credit unions, and private capital providers across Canada
- We run DCR sensitivity analysis showing how your deal performs under different interest rate and vacancy scenarios before you commit to a purchase
Questions About DSCR & Cash Flow Financing
Everything you need to know about qualifying based on rental income in Canada. Can't find your answer? Book a call with our team.
DSCR & Cash Flow Basics
DSCR (Debt Service Coverage Ratio) loans by name are a US product. However, Canadian lenders use the exact same principle — qualifying you based on the property's cash flow rather than your personal income. In Canada, this is called the Debt Coverage Ratio (DCR). We can arrange cash flow based financing starting from as little as 1 rental unit. The concept is identical: if the property's rental income covers the mortgage payment with a sufficient margin, you qualify regardless of your personal T4 income.
The DCR is calculated by dividing the property's Net Operating Income (NOI) by the total annual debt service (mortgage payments including principal and interest). For example, if a property generates $120,000 in NOI and the annual mortgage payments are $100,000, the DCR is 1.20. Most Canadian commercial lenders require a minimum DCR of 1.10 to 1.25, with CMHC multi-unit insured programs typically requiring 1.10. We prepare the NOI calculation using standardized expense ratios and market vacancy assumptions.
Yes. We arrange cash flow based financing for rental properties starting from as little as 1 unit. For smaller properties, select lenders evaluate the property's rental income as the primary qualification factor. For larger commercial properties (5+ units), DCR-based qualification is standard — your personal employment income becomes a secondary consideration or is not required at all. We match you with the right lender program based on your property size and situation.
Canada vs. US Comparison
US DSCR loans qualify entirely on rental income for any property type (even single-family homes), require no W-2 or tax returns, and can close in an LLC with 30-year fixed rates. Canadian commercial mortgages qualify on cash flow primarily for 5+ unit properties, may still consider your overall financial picture and net worth, and close in personal name or a Canadian corporation. If you want the full DSCR experience with no income verification, we offer US DSCR loans specifically designed for Canadian investors buying American real estate.
We arrange cash flow based financing for properties starting from a single rental unit — including single-family rentals, duplexes, triplexes, fourplexes, apartment buildings, mixed-use properties, commercial plazas, office buildings, and industrial properties. For 1-4 unit properties, we work with select lenders who qualify primarily on the property's rental income. For 5+ unit commercial properties, DCR-based underwriting is standard across most lenders.
Both markets have advantages. Canada offers stability, proximity, familiarity with landlord-tenant laws, and the ability to manage properties without crossing a border. The US offers true DSCR loans (no personal income required), LLC liability protection, 30-year fixed rates not available in Canada, and lower property prices in many high-yield markets. Many of our clients invest in both countries simultaneously. We help you compare options and build a cross-border portfolio strategy that maximizes your overall returns.
Scaling & Programs
CMHC MLI Select is an insured financing program for apartment buildings (5+ units) that offers up to 95% LTV, 50-year amortization periods, and interest rates below conventional commercial terms. Properties that meet energy efficiency, accessibility, or affordability criteria receive the most favourable terms. This program is one of the best-kept secrets in Canadian real estate investing — the high leverage and long amortization dramatically improve cash-on-cash returns. We help qualified investors access this program for new acquisitions and refinances.
Many investors start with residential mortgages, then hit lender caps on the number of financed properties allowed. Cash flow financing removes those limits — whether you have 1 property or 50, qualification is based on the property's or portfolio's NOI and DCR rather than personal income. We guide investors through this transition at any stage, helping you restructure existing financing and set up lending relationships that support unlimited scaling.
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