DSCR Loan Calculator — Canadian Edition
Calculate your Debt Coverage Ratio (DCR) and see if your property's rental income qualifies for cash flow mortgage financing in Canada.
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Simple 3-Step Process
How This Calculator Works
Calculate your Debt Coverage Ratio in minutes. Enter your property details and get instant results.
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Enter your rental income, purchase price, expenses, and desired financing terms.
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See your DCR ratio, maximum loan amounts, monthly cash flow, and qualification verdict.
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Understanding Your Options
Conventional Cash Flow Qualification in Canada
Canadian conventional commercial lenders assess your property's ability to generate enough income to cover the mortgage — the same principle behind US DSCR loans.
Banks & Credit Unions
Major banks and credit unions offer conventional commercial mortgages for investment properties. They typically have the most conservative underwriting but offer competitive rates for strong deals.
DCR of 1.20-1.30 typically required
Up to 75% LTV for purchases and refinances
Amortization up to 25 years
Most competitive rates for well-qualified borrowers
Alternative Lenders
Alternative and private lenders offer more flexible conventional commercial mortgages. They typically accept lower DCR ratios and looser underwriting, making them ideal for portfolio investors.
DCR as low as 1.10 accepted by some lenders
Up to 80% LTV with some lenders
Amortization up to 30 years
Available for all property types — no unit minimums
Related Resources
How cash flow financing works for Canadian investors
Calculate your DSCR for US investment properties
Apartment building loans in Canada
DSCR loan programs for US properties
How Canadians qualify for US DSCR loans
Free tools and guides for real estate investors
What Our Clients Say
DSCR Loan Calculator FAQ
Everything you need to know about DSCR / DCR calculations for Canadian conventional commercial mortgages. Can't find your answer? Book a call with our team.
Understanding DCR/DSCR
DSCR (Debt Service Coverage Ratio) loans by that name are primarily a US product. However, Canadian conventional commercial mortgages use the same core principle — qualification based on the property's rental income rather than your personal income. In Canada, this is called the Debt Coverage Ratio (DCR). Conventional lenders such as banks, credit unions, and alternative lenders assess whether the property's Net Operating Income (NOI) can cover the mortgage payments. This calculator helps you determine your DCR using the same formula Canadian lenders use.
Most Canadian conventional commercial lenders require a DCR of 1.10 to 1.30, meaning the property's NOI must be 10-30% higher than the annual mortgage payments. Banks and credit unions typically require 1.20-1.30, while some alternative lenders may accept as low as 1.10. A higher DCR means less risk for the lender and easier approval.
DCR = Net Operating Income (NOI) / Annual Debt Service. NOI is your annual rental income minus operating expenses (property taxes, insurance, condo fees). Annual Debt Service is your total mortgage payments for the year (principal + interest). For example, if your NOI is $60,000 and your annual mortgage payment is $48,000, your DCR is 1.25.
Qualification & Property Types
Residential mortgages qualify you based on personal income, using GDS (Gross Debt Service) and TDS (Total Debt Service) ratios plus the mortgage stress test. Cash flow (DCR) qualification looks at the property's income instead. This is critical for portfolio investors — residential qualification gets harder with each property you add, but cash flow qualification focuses on each deal independently.
Conventional commercial mortgages with cash flow qualification are available for: multi-family properties (5+ units) from banks, credit unions, and alternative lenders, mixed-use properties, commercial real estate, and in some cases, residential portfolios of 1-4 unit properties through alternative lenders. The stronger the rental income relative to the mortgage payment, the easier it is to qualify.
This calculator is designed for Canadian conventional commercial mortgages using Canadian lending standards. For US DSCR loans — which have different requirements, rates, and terms — use our US DSCR Loan Calculator instead. US DSCR loans are available for Canadians investing in the US through foreign national programs.
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