Reading the numbers behind a deal.
A proforma is a projection of a project's income, expenses, financing and return — it tells you whether a deal works before you buy or build.
Gross Potential Income — total rent if every unit is leased at market, plus parking and other income, before vacancy.
Net Operating Income — effective gross income minus operating expenses, before financing. It drives value and how much debt the project can carry.
The ratio of NOI to mortgage payments. Conventional lenders often want ~1.20+, while MLI Select can allow about 1.10, supporting a larger loan.
The long-term mortgage that replaces construction financing once the building is built and leased — under MLI Select it can be sized larger thanks to the lower DCR.
They're estimates built from current data to compare lots on a like-for-like basis. Treat them as a starting point and verify rents, costs and financing for your actual project.
As-of-right unit potential shown here is a planning guide generated from Toronto's multiplex and Expanding Housing Options in Neighbourhoods (EHON) permissions, not legal advice. Always confirm what a specific lot allows with the City of Toronto or a qualified planner before purchasing or designing.
