What DealSizer does
DealSizer takes a commercial mortgage broker from a new deal to a lender-ready one-pager in under two minutes, on a phone.
How it works
- Enter the property: address, asset type, price or value, rent roll and expenses. Twelve units at the same rent take one line.
- Compare two financings side by side: a conventional loan and CMHC MLI Select. Change a rate or a ratio and the amounts recalculate right away.
- Track the documents: a checklist per deal shows what is received and what is missing.
- Generate the lender one-pager: a one-page PDF, in French or English, with the snapshot, both scenarios, income and expenses, the unit mix and the document status.
What it calculates
- Gross potential income: the rent of every unit over 12 months, plus other income.
- Effective gross income: gross potential income less vacancy and credit loss.
- Net operating income (NOI): effective gross income less operating expenses.
- Max loan by DSCR (debt service coverage ratio): the loan whose annual payments equal NOI divided by the minimum DSCR.
- Max loan by LTV (loan-to-value): the property value times the maximum LTV.
- Max loan: the lower of the two. The screen shows which ratio is the binding one.
Payments are computed with semi-annual compounding, as for Canadian fixed-rate mortgages.
An example
A 12-unit building at $1,450 a month, 3% vacancy, $72,000 of expenses a year, valued at $2,400,000. Net operating income is $130,536.
| Scenario | Max loan | Binding |
|---|---|---|
| Conventional 5.00% · 25 yrs · 1.25x · 75% |
$1,496,273 | DSCR |
| CMHC MLI Select 4.20% · 50 yrs · 1.10x · 95% |
$2,280,000 | LTV |
Same building: $783,727 more with CMHC MLI Select.
Computed with the default scenarios from Settings.
What you can adjust
Rate, amortization, minimum DSCR and maximum LTV can be changed in each deal. The starting values, the vacancy rates and the asset types eligible for MLI Select are set in Settings.
What it is, and what it is not
DealSizer is a demo. The three starting deals are fictional. Results are indicative: rates and program criteria are to be confirmed with lenders.
Not included for now: lender matching, renewal and maturity tracking, a document upload portal for borrowers, user accounts, AMF and FINTRAC compliance, live rates.
What would you change?
This demo was built by Fred Morin. If something is missing for it to be useful to you, write to me: fredmorin.dev