Maximum credit line
Example of less than
maximum credit line


Loan to value %


Loan to value %

Market value of property





Main account (credit line)





Amortizing sub-account










How much can you borrow? Manulife Bank will lend up to 65 per cent of the market value of your property (defined as lower of appraised value and purchase price).

What are the limits? Loan limits range between $250,000 to a maximum of $5,000,000

What types of properties qualify? Buildings that qualify include multi-residential properties, office buildings, condos, retail plazas and light industrial properties.

What types of properties don’t qualify? Buildings that don’t qualify include nonprofits, environmentally sensitive facilities, hospitality industry, raw land and real estate developments.

How is the account structured? The main account is a variable rate account you use for deposits and withdrawals. The size of the main account varies by business, but is limited to no more than 50 per cent of market value of the property. Additional borrowings are available through a choice of sub-accounts. See table below.

How is interest paid? The credit line has no fixed amortization and paying interest monthly is acceptable. The sub account requires monthly payments of principal plus interest.

Do you have to move all your business to Manulife Bank? No. We’ll work with you to determine what makes the most sense for your business.

Does your building qualify?

Review the following four sections to determine if your commercial property qualifies as collateral for M1B:


Office building

Retail plaza, strip mall, shopping centre

Light industrial

Multi-residential property (single title with five or more units)


Environmentally sensitive business e.g., gas station, auto repair, autobody, dry cleaner

Single use / hospitality e.g., parking lot, self-storage, car dealership, movie theatre, hotel, restaurant, bar, golf course

Medium or heavy industry e.g., mining, manufacturing, agriculture

Real estate development e.g., property under construction, speculative property, vacant land, leased land

Not-for-profit organizations

If owner-occupied building housing an operating business, owner must have managed business for a minimum of 3 years.


If investment property, owner must have minimum 3 years experience managing investment properties.

How much are you looking to borrow?

Minimum loan: $250,000 65% loan to value Minimum market value for minimum loan: $385,000
Maximum loan: $5 million 65% loan to value Minimum market value for maximum loan: $7.7 million

Ready to manage cash flow on your terms?

Contact your Business & Insurance Lending Specialist today.