Updated August 21, 2026
Commercial Mortgage Rates
Commercial mortgage rates start at 5.68% as of August 21, 2026. Select Commercial arranges competitive rates on multifamily, apartment, retail, office, industrial, hotel, SBA and CMBS loans nationwide, with long-term fixed financing, terms and amortizations up to 30 years, and no upfront fees.
Written and reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC.
Get a Free Rate Quote| Loan Type | Rate* | Max LTV |
|---|---|---|
| Multifamily Loan (Over $6M) | 5.68% | Up to 80% |
| Apartment Building Loan (Under $6M) | 6.08% | Up to 80% |
| Retail / Shopping Center | 6.76% | Up to 75% |
| CMBS Loan | 6.66% | Up to 75% |
| NNN Single Tenant | 6.36% | Up to 75% |
| Mobile Home Park | 6.08% | Up to 75% |
| Single Credit Tenant | 6.36% | Up to 75% |
| Owner-Occupied Commercial | 6.56% | Up to 90% |
| Industrial Building | 6.76% | Up to 75% |
| Office Building | 6.76% | Up to 75% |
| Self-Storage | 6.76% | Up to 75% |
| Medical Office / Healthcare | 6.76% | Up to 75% |
| SBA 504 Loan | 6.03% | Up to 90% |
| SBA 7(a) Loan | 6.75% | Up to 90% |
| Special Purpose Property | 6.56% | Up to 90% |
| Hotel Loan | 6.75% | Up to 90% |
| Motel Loan | 6.75% | Up to 90% |
| Bridge Loan | 9.00% | Up to 80% |
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Commercial Mortgage Rates Update as of July 29, 2026
On July 29, 2026, the Federal Reserve held the federal funds rate steady at 3.50% to 3.75%. The decision came on a divided 9-3 vote, with three regional Fed presidents dissenting in favor of a quarter-point rate increase to address inflation that has run above the Fed’s 2% target for more than five years. Fed Chair Kevin Warsh signaled the committee will not hesitate to combat inflation, emphasizing there is “no soft inflation target.” Markets now see little chance of near-term rate cuts, with the risk skewed toward a higher-for-longer stance rather than the easing many borrowers had hoped for.
Why this matters for investors
As of the date this was written, the 10 year Treasury yield was hovering near 4.6%, close to its highest levels in over a year. Persistent inflation, elevated energy prices, and concerns over expanding federal deficits have kept long term yields elevated, holding long term commercial mortgage rates higher with them. Lenders remain selective, and the easing bias that markets leaned on earlier in the year has largely been priced out.
Where commercial mortgage rates are landing today
Commercial mortgage rates continue to track the 10 year Treasury and SOFR with deal by deal spreads. With the Fed signaling no urgency to cut and some members pushing for hikes, borrowers should not assume that holding out for a better rate will be rewarded in the near term. Exact pricing depends on leverage, debt service coverage, property type, location, borrower track record, and prepayment structure. Two borrowers on the same day may see very different outcomes.
Refinancing and loan maturities
Many loans originated between 2019 and 2021 are maturing in 2026 and are resetting at commercial mortgage rates meaningfully higher than their original notes. With rate cut expectations now pushed out, borrowers should plan for tighter proceeds if net operating income has not kept pace. Strategies to consider include paying down principal at refinance, bringing in equity partners, exploring bridge financing to buy time for stabilization, or pursuing assumable agency debt where available.
Practical next steps for investors
- Underwrite new loans using current commercial mortgage rates, realistic cap rates, and in place cash flow, not anticipated rate cuts
- Look for opportunities to increase NOI by raising rents and reducing vacancy where possible
- Plan for more conservative loan to value ratios, debt service coverage requirements, and debt yield standards in today’s lending environment
- Lock rates early when terms are acceptable rather than waiting for material improvement
How Commercial Mortgage Rates Are Determined
Commercial mortgage rates are not set arbitrarily. Every quoted rate is built from two components: a benchmark index and a credit spread. Understanding each helps borrowers anticipate pricing and negotiate more effectively.
The benchmark index
Long-term fixed commercial mortgage rates are typically priced off the corresponding U.S. Treasury yield: a 5-year fixed loan to the 5-year Treasury, a 10-year fixed loan to the 10-year Treasury. Floating-rate and bridge loans are usually priced off SOFR. When Treasury yields rise or fall, commercial mortgage rates generally move in the same direction.
The credit spread
On top of the benchmark, lenders add a spread that reflects the credit risk of the specific loan. Stronger deals get tighter spreads; riskier deals get wider spreads. Multifamily loans through Fannie Mae and Freddie Mac generally carry the tightest spreads in the market, which is why multifamily rates are typically the lowest available.
Property type matters
Lenders price property types differently based on perceived risk. Apartment buildings and well-located industrial properties currently command the most favorable rates. Office buildings, hotels, and special-purpose properties typically price wider due to higher perceived cash-flow volatility.
Factors That Affect Your Commercial Mortgage Rate
Two borrowers on the same day can be quoted very different rates on similar-looking properties. These are the variables that drive the difference:
- Loan-to-value (LTV): Lower leverage usually earns a lower rate; a 55% LTV loan typically prices tighter than 75% on the same property.
- Debt-service-coverage ratio (DSCR): Higher DSCR means lower perceived risk. Most lenders require 1.25x on multifamily and 1.30x to 1.40x on other property types.
- Debt yield: Many lenders underwrite to a minimum debt yield (NOI divided by loan amount), typically 7% to 10% by asset class.
- Property type: Multifamily, industrial and grocery-anchored retail price tighter; hotels, office and special-use price wider.
- Loan term and amortization: Shorter terms with longer amortizations affect both the benchmark and the spread.
- Recourse vs. non-recourse: Non-recourse loans usually price slightly higher than full-recourse, all else equal.
- Borrower experience and net worth: Experienced borrowers with strong balance sheets and liquidity get better rates.
- Property location: Primary markets generally price tighter than secondary and tertiary markets.
- Prepayment structure: Yield maintenance and defeasance allow tighter pricing than step-down or open prepayment.
- Loan size: Larger loans often access lower rates through agency and CMBS channels.
Commercial Mortgage Benefits
- Commercial mortgage rates start as low as 5.68% (as of August 21, 2026)
- A commercial mortgage broker with over 30 years of lending experience
- No upfront application or processing fees
- Simplified application process
- Up to 80% LTV on multifamily, 75% on commercial, 90% with SBA
- Terms and amortizations up to 30 years
- Loans for purchase and refinance, including cash-out
- 48-hour written pre-approvals with no cost and no obligation
What Our Clients Say
“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“I needed a business mortgage for my small business. Stephen helped me the entire way and was always accessible. I highly recommend them.”
Jonathan M. · Seattle, WA“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MA“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, ILRecent Closings
A sample of apartment, multifamily and commercial loans we have arranged nationwide.
Detailed Rates by Loan Program
Full pricing detail and typical terms for each program we arrange.
Multifamily Loans (Over $6M)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.68% | Up to 30 years |
| 7 Year Fixed | 5.79% | Up to 30 years |
| 10 Year Fixed | 5.88% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Streamlined underwriting for institutional multifamily loans
- Loan amounts from $6,000,000+
- Loan-to-value up to 80% on purchases and 75% on refinances
- Cash-out refinances are acceptable
- Pricing by LTV and DSCR: Tier 2 (75-80% / 1.25x), Tier 3 (65% / 1.35x), Tier 4 (55% / 1.55x)
- Interest-only loans are available
- Step-down and yield-maintenance prepayment penalties
- Non-recourse loans are available
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. We specialize in multifamily loans and will find the best commercial mortgage rates and terms for your needs.
Apartment Loans (Under $6M)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.08% | Up to 30 years |
| 7 Year Fixed | 6.19% | Up to 30 years |
| 10 Year Fixed | 6.28% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Simplified underwriting for small-balance loans
- Loan amounts from $1,500,000 to $6,000,000
- Loan-to-value up to 80% on purchases and 75% on refinances
- Cash-out refinances are acceptable
- Pricing by LTV and DSCR: Tier 2 (75-80% / 1.25x), Tier 3 (65% / 1.35x), Tier 4 (55% / 1.55x)
- Interest-only loans are available
- Step-down and yield-maintenance prepayment penalties
- Non-recourse loans are available
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. We specialize in apartment loans and will find the best commercial mortgage rates and terms for your needs.
Commercial Mortgage (Retail, Office, Industrial, Self-Storage, Medical)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.76% | Up to 25 years |
| 7 Year Fixed | 6.89% | Up to 25 years |
| 10 Year Fixed | 7.06% | Up to 25 years |
- Up to 75% LTV
- Loan amounts from $1,500,000 and up
- Retail, office, industrial, warehouse, self-storage, medical and mixed commercial properties
- Purchase, refinance and cash-out refinance
- Fixed 5, 7 and 10 year terms
- Recourse and select non-recourse options
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Conventional commercial financing for income-producing retail, office, industrial, warehouse, self-storage and medical properties.
CMBS Loans
| Loan Product | Rate* | Amortization |
|---|---|---|
| 10 Year Fixed | 6.66%-7.56% | Up to 30 years |
- Up to 75% LTV
- Loan amounts from $2 million and up
- Available for apartments, retail, office, warehouse and hospitality
- Loan-to-value up to 75% on purchases and refinances
- Cash-out refinances are acceptable
- Interest-only loans are available
- Loans are non-recourse
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Learn more about our CMBS (conduit) loan programs.
NNN / Single-Tenant
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.36% | Up to 30 years |
| 7 Year Fixed | 6.49% | Up to 30 years |
| 10 Year Fixed | 6.66% | Up to 30 years |
- Up to 75% LTV
- Investment-grade national credit tenants such as national pharmacy, convenience, auto-parts and quick-service brands
- Up to 75% LTV for purchases and refinances
- Cash-out available
- Low step-down prepayment penalties
- Loan terms up to the remaining lease term
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Explore our NNN and credit-tenant financing options.
Fannie Mae Small Balance (Under $6M)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.08% | Up to 30 years |
| 7 Year Fixed | 6.19% | Up to 30 years |
| 10 Year Fixed | 6.28% | Up to 30 years |
| 12 Year Fixed | 6.43% | Up to 30 years |
| 15 Year Fixed | 6.60% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Simplified underwriting for small-balance loans
- Loan amounts from $2,000,000 to $6,000,000
- Loan-to-value up to 80% on purchases and 75% on refinances
- Cash-out refinances are acceptable
- Pricing by LTV and DSCR: Tier 2 (75-80% / 1.25x), Tier 3 (65% / 1.35x), Tier 4 (55% / 1.55x)
- Interest-only loans are available
- Step-down and yield-maintenance prepayment penalties
- Non-recourse loans are available
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. We offer both small and large balance Fannie Mae programs and will structure the best option.
Fannie Mae Large Balance (Over $6M)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.68% | Up to 30 years |
| 7 Year Fixed | 5.79% | Up to 30 years |
| 10 Year Fixed | 5.88% | Up to 30 years |
| 12 Year Fixed | 6.03% | Up to 30 years |
| 15 Year Fixed | 6.20% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Streamlined underwriting for institutional multifamily loans
- Loan amounts from $6,000,000+
- Loan-to-value up to 80% on purchases and 75% on refinances
- Cash-out refinances are acceptable
- Pricing by LTV and DSCR: Tier 2 (75-80% / 1.25x), Tier 3 (65% / 1.35x), Tier 4 (55% / 1.55x)
- Interest-only loans are available
- Step-down and yield-maintenance prepayment penalties
- Non-recourse loans are available
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Both small and large balance options are available through our Fannie Mae programs.
Freddie Mac Small Balance (SBL)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.15% | Up to 30 years |
| 7 Year Fixed | 6.21% | Up to 30 years |
| 10 Year Fixed | 6.17% | Up to 30 years |
| 12 Year Fixed | 6.40% | Up to 30 years |
| 15 Year Fixed | 6.42% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Simplified underwriting for small-balance multifamily loans
- Loan amounts from $2,000,000 to $10,000,000
- Loan-to-value up to 80% on purchases and 75% on refinances
- Cash-out refinances are acceptable
- Pricing by LTV and DSCR: Tier 2 (75-80% / 1.25x), Tier 3 (65% / 1.35x), Tier 4 (55% / 1.55x)
- Interest-only loans are available
- Step-down and yield-maintenance prepayment penalties
- Non-recourse loans are available
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Learn more about Freddie Mac multifamily and Small Balance (SBL) options.
Freddie Mac Large Balance (Over $10M)
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.81% | Up to 30 years |
| 7 Year Fixed | 5.86% | Up to 30 years |
| 10 Year Fixed | 5.85% | Up to 30 years |
| 12 Year Fixed | 5.95% | Up to 30 years |
| 15 Year Fixed | 6.00% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Institutional underwriting for large-balance multifamily loans
- Loan amounts from $10,000,000+
- Loan-to-value up to 80% on purchases and refinances
- Cash-out refinances are acceptable
- Interest-only options may be available
- Yield-maintenance or step-down prepayment structures
- Non-recourse loans available with standard carve-outs
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Learn more about Freddie Mac multifamily and Large Balance options.
Bank Apartment Mortgage
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.25% | Up to 30 years |
| 7 Year Fixed | 6.50% | Up to 30 years |
| 10 Year Fixed | 6.75% | Up to 30 years |
- Tiered pricing from 55% to 80% LTV
- Simplified underwriting for small-balance loans
- Loan amounts from $1,500,000 to $10,000,000+ nationwide
- Loan-to-value up to 80% on purchases and 75% on refinances
- Cash-out refinances are acceptable
- Pricing by LTV and DSCR: Tier 2 (75-80% / 1.25x), Tier 3 (65% / 1.35x), Tier 4 (55% / 1.55x)
- Interest-only loans are available
- Step-down and yield-maintenance prepayment penalties
- Non-recourse loans are available
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Portfolio bank financing for stabilized 5+ unit apartment properties.
SBA Loans
| Loan Product | Rate* | Amortization |
|---|---|---|
| SBA 504 (Fixed) | 6.03% | Up to 25 years |
| SBA 7(a) (Adjustable) | 6.75% | Up to 25 years |
- Up to 90% LTV, 100% possible
- Purchase or refinance of owner-occupied properties
- Relaxed income and credit qualifying guidelines
- Capital available for working capital, equipment and receivables
- Up to 90% LTV (100% for certain professional businesses)
- Loans from $1,500,000+
Rates last updated August 21, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary. Owner-occupied business real estate financing with high leverage.
Get Your Custom Rate Quote
No cost, no obligation. Written answers within 48 hours on loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up