Commercial Mortgage Rates – Current Rates as of June 1, 2026
Compare today's commercial mortgage rates starting at 5.54% as of 6/01/26. Select Commercial offers competitive commercial mortgage rates on multifamily, apartment, retail, office, industrial, hotel, SBA, and CMBS loans nationwide, with long-term fixed financing, flexible repayment terms, up to 30-year amortizations, and streamlined commercial loan approvals.
Commercial Mortgage Rates and Loan Terms as of June 1, 2026
| Loan Type | Starting Rate* | Max LTV |
|---|---|---|
| Multifamily Loan Over $6 Million | 5.54% | Up to 80% |
| Apartment Building Loan Under $6 Million | 5.94% | Up to 80% |
| Retail / Shopping Center Loan | 6.56% | Up to 75% |
| CMBS Loan | 6.46% | Up to 75% |
| NNN Single Tenant | 6.16% | Up to 75% |
| Mobile Home Park Loan | 5.94% | Up to 75% |
| Single Credit Tenant | 6.16% | Up to 75% |
| Owner-Occupied Commercial Loan | 6.36% | Up to 90% |
| Industrial Building Loan | 6.56% | Up to 75% |
| Office Building Loan | 6.56% | Up to 75% |
| Self-Storage Loan | 6.56% | Up to 75% |
| Medical Office / Healthcare Loan | 6.56% | Up to 75% |
| SBA 504 Loan | 5.88% | Up to 90% |
| SBA 7(a) Loan | 6.50% | Up to 90% |
| Special Purpose Property Loan | 6.50% | Up to 90% |
| Hotel Loan | 6.50% | Up to 90% |
| Motel Loan | 6.50% | Up to 90% |
| Bridge Loan | 9.00% | Up to 80% |
Commercial Mortgage Rates Update as of April 29, 2026
On April 29, 2026, the Federal Reserve held the federal funds rate steady at 3.50% to 3.75% for the third consecutive meeting. The decision came on an unusually divided 8-4 vote, the most dissents on an FOMC decision since October 1992, with some members preferring cuts and others opposed to signaling further easing ahead. Following the meeting, markets sharply repriced expectations and now anticipate no rate changes through the remainder of 2026, with some implied probability of a rate hike rather than a cut before year end.
Why this matters for investors
As of the date this was written, the 10 year Treasury yield reached approximately 4.60%, the highest level in roughly 15 months. Persistent inflation, elevated oil prices, and concerns over expanding federal deficits have pushed long term yields higher, lifting long term commercial mortgage rates with them. Lenders remain selective, and the easing bias that defined late 2025 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 10 year yield trending higher rather than lower, 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 how each piece is determined helps borrowers anticipate pricing and negotiate more effectively.
The benchmark index
Long term fixed rate commercial mortgage rates are typically priced off the corresponding U.S. Treasury yield. A 5 year fixed loan is benchmarked to the 5 year Treasury, a 10 year fixed loan to the 10 year Treasury, and so on. Floating rate and bridge loans are usually priced off SOFR (the Secured Overnight Financing Rate). 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 commercial mortgage rates are typically the lowest available.
Property type matters
Lenders price different property types differently based on perceived risk. Apartment buildings and well located industrial properties currently command the most favorable commercial mortgage rates. Office buildings, hotels, and special purpose properties typically price wider due to higher perceived volatility in cash flow.
Factors That Affect Your Commercial Mortgage Rate
Two borrowers on the same day can be quoted very different commercial mortgage rates on what looks like a similar property. These are the variables that drive the difference:
- Loan to value (LTV): Lower leverage usually earns a lower commercial mortgage rate. A 55% LTV loan will typically price tighter than a 75% LTV loan on the same property.
- Debt service coverage ratio (DSCR): The higher the DSCR, the lower the perceived risk. Most lenders require a minimum 1.25x DSCR on multifamily and 1.30x to 1.40x on other commercial property types.
- Debt yield: Many lenders also underwrite to a minimum debt yield (NOI divided by loan amount), typically 7% to 10% depending on asset class.
- Property type: Multifamily, industrial, and grocery-anchored retail generally price tighter. Hotels, office, and special use properties typically price wider.
- Loan term and amortization: Shorter terms with longer amortizations affect both the benchmark and the spread.
- Recourse vs. nonrecourse: Nonrecourse loans usually price slightly higher than full recourse loans, all else equal.
- Borrower experience and net worth: Experienced borrowers with strong balance sheets and liquidity get better commercial mortgage rates.
- Property location: Primary markets generally price tighter than secondary and tertiary markets.
- Prepayment structure: Yield maintenance and defeasance allow for tighter pricing than step-down or open prepayment.
- Loan size: Larger loans often access lower commercial mortgage rates through agency and CMBS channels.
Commercial Mortgage Benefits
Commercial mortgage rates start as low as 5.54% (as of June 1st, 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
• 24 hour written pre-approvals with no cost and no obligation
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Multifamily Loan Rates – Detailed
Looking for comprehensive multifamily loan rates over $6 million, including national pricing, underwriting standards, and financing options? View our dedicated multifamily lending page for full details on commercial mortgage rates for large apartment properties.
View Multifamily Loan Programs & Rates Over $6 Million
Multifamily Rates Updated June 1st, 2026
| Multifamily Loan Rates Over $6,000,000 | Rate* | Amortization | |
|---|---|---|---|
| 5 Year Fixed | 5.54% | Up to 30 years | |
| 7 Year Fixed | 5.52% | Up to 30 years | |
| 10 Year Fixed | 5.56% | Up to 30 years |
- Tiered pricing from 55% – 80% LTV
- Streamlined underwriting for institutional multifamily loans
- Loan amounts from $6,000,000+
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
-
Pricing based on loan-to-value and debt service coverage ratio:
- 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
- Nonrecourse loans are available
- We specialize in multifamily loans and will find the best commercial mortgage rates and terms for your specific needs.
Apartment Building Loan Rates – Detailed
Looking for comprehensive apartment loan rates under $6 million, including pricing, underwriting guidelines, and financing options? View our dedicated apartment lending page for full details on commercial mortgage rates for small balance apartment buildings.
View Apartment Loan Programs & Rates Under $6 Million
Apartment Loan Rates Updated June 1st, 2026
| Apartment Loan Rates Under $6,000,000 | Rates* | Amortization | |
|---|---|---|---|
| 5 Year Fixed | 5.94% | Up to 30 years | |
| 7 Year Fixed | 5.92% | Up to 30 years | |
| 10 Year Fixed | 5.96% | Up to 30 years |
- Tiered pricing from 55% – 80% LTV
- Simplified underwriting for small balance loans
- Loan amounts from $1,500,000 - $6,000,000, up to $7,500,000 in large markets
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
-
Pricing based on loan-to-value and debt service coverage ratio:
- 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
- Nonrecourse loans are available
- We specialize in apartment loans and will find the best commercial mortgage rates and terms for your specific needs.
CMBS Rates – Detailed
Looking for competitive CMBS loan rates for stabilized commercial properties, including apartments, retail, office, and hospitality? View our dedicated CMBS lending page for full program details on these commercial mortgage rates.
View CMBS Loan Programs & Rates
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| 10 Year Fixed | 6.46%-7.26% | Up to 30 years |
- Up to 75% LTV
- Loan amounts from $2 million and up
- Loans available for apartment buildings, retail shopping centers, office buildings, warehouses, and hospitality
- Loan to value ratios up to 75% on purchases and refinances
- Cash out refinances are acceptable
- Interest only loans are available
- Loans are non-recourse
NNN Lease – Detailed
Financing a triple net (NNN) leased property with a national or credit tenant? Explore our CMBS and NNN financing options for long-term, non-recourse structures at competitive commercial mortgage rates.
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| 3 Year Fixed | 6.08% | Up to 30 years |
| 5 Year Fixed | 6.16% | Up to 30 years |
| 7 Year Fixed | 6.30% | Up to 30 years |
| 10 Year Fixed | 6.46% | Up to 30 years |
- Up to 75% LTV
- Credit tenants such as Walgreens, CVS, AutoZone, Panera Bread, and similar national 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
Fannie Mae Small Balance Multifamily – Detailed
Looking for competitive Fannie Mae multifamily loan rates, including both Small Balance and standard program options? View our dedicated Fannie Mae lending page covering all available structures, guidelines, and current commercial mortgage rates.
View Fannie Mae Multifamily Loan Programs & Rates
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.94%-6.95% | Up to 30 years |
| 7 Year Fixed | 5.92%-6.85% | Up to 30 years |
| 10 Year Fixed | 5.96%-6.91% | Up to 30 years |
| 15 Year Fixed | 6.41%-7.17% | 30 years |
| 30 Year Fixed | 6.44%-7.15% | 30 years |
- Tiered pricing from 55% – 80% LTV
- Simplified underwriting for small balance loans
- Loan amounts from $1,500,000 – $6,000,000
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
-
Pricing based on loan-to-value and debt service coverage ratio:
- 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
- Nonrecourse loans are available
- We offer both small balance and large balance Fannie Mae multifamily loan programs and will structure the best option for your property.
Fannie Mae Large Balance Multifamily – Detailed
Looking for competitive Fannie Mae multifamily loan rates for larger apartment properties? View our main Fannie Mae lending page covering both Small Balance and Large Balance commercial mortgage rates.
View Fannie Mae Multifamily Loan Programs & Rates
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.54%-6.97% | Up to 30 years |
| 7 Year Fixed | 5.52%-6.84% | Up to 30 years |
| 10 Year Fixed | 5.56%-6.92% | Up to 30 years |
| 15 Year Fixed | 6.25%-6.59% | 30 years |
| 30 Year Fixed | 6.27%-6.56% | 30 years |
- Tiered pricing from 55% – 80% LTV
- Streamlined underwriting for institutional multifamily loans
- Loan amounts from $6,000,000+
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
-
Pricing based on loan-to-value and debt service coverage ratio:
- 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
- Nonrecourse loans are available
- Both small balance and large balance options are available through our Fannie Mae multifamily loan programs .
Freddie Mac Small Balance Multifamily – Detailed
Looking for competitive Freddie Mac multifamily loan rates for small balance properties? View our main Freddie Mac lending page for full program details, underwriting guidelines, and available commercial mortgage rates.
View Freddie Mac Multifamily Loan Programs & Rates
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.73% | Up to 30 years |
| 7 Year Fixed | 5.73% | Up to 30 years |
| 10 Year Fixed | 5.93% | Up to 30 years |
- Tiered pricing from 55% – 80% LTV
- Simplified underwriting for small balance multifamily loans
- Loan amounts from $1,500,000 – $6,000,000, up to $7,500,000 in large markets
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
-
Pricing based on loan-to-value and debt service coverage ratio:
- 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
- Nonrecourse loans are available
- Learn more about Freddie Mac multifamily loan programs and available Small Balance options.
Freddie Mac Large Balance Multifamily – Detailed
Looking for competitive Freddie Mac multifamily loan rates for larger stabilized and value-add properties? View our main Freddie Mac lending page covering both Small Balance and Large Balance programs and their respective commercial mortgage rates.
View Freddie Mac Multifamily Loan Programs & Rates
Updated June 1st, 2026
| Freddie Mac Multifamily Rates Over $6,000,000 | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Year Fixed Loan Rates | 5.54% | Up to 80% | |
| Multifamily 7 Year Fixed Loan Rates | 5.52% | Up to 80% | |
| Multifamily 10 Year Fixed Loan Rates | 5.56% | Up to 80% | |
- Tiered pricing from 55% – 80% LTV
- Institutional underwriting for large balance multifamily loans
- Loan amounts from $6,000,000+
- Loan to value ratios 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
- Nonrecourse loans available with standard carve-outs
- Learn more about Freddie Mac multifamily loan programs and available Large Balance options.
Bank Apartment Mortgage – Detailed
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.00%-6.50% | Up to 30 years |
| 7 Year Fixed | 6.00%-6.50% | Up to 30 years |
| 10 Year Fixed | 6.25%-6.75% | Up to 30 years |
- Tiered pricing from 55% – 80% LTV
- Simplified underwriting for small balance loans
- Loan amounts from $1,500,000 - $10,000,000+ Nationwide
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
- Pricing based on loan-to-value and debt service coverage ratio:
- 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
- Nonrecourse loans are available
Small Business Administration (SBA) – Detailed
Updated June 1st, 2026
| Loan Product | Rate* | Amortization |
|---|---|---|
| Adjustable | 6.50%-8.50% | Up to 25 years |
| 5 Year Fixed | 6.50%-8.50% | Up to 25 years |
- Up to 90% LTV, 100% possible
- Loans for the purchase or refinance of owner occupied properties
- Relaxed income and credit qualifying guidelines
- Capital available for working capital, equipment, and accounts receivable
- Loans up to 90% LTV (100% for certain professional businesses)
- Loans from $1,500,000+
Commercial Mortgage Rates FAQ
Get quick answers to the most common questions about today's commercial mortgage rates, how they are priced, and how to qualify for the best terms.
What are current commercial mortgage rates?
As of June 1, 2026, commercial mortgage rates start at 5.54% for multifamily loans over $6 million, 5.94% for apartment loans under $6 million, 6.46% for CMBS loans, and 5.88% for SBA 504 loans. Rates vary based on property type, loan size, leverage, debt service coverage, and borrower qualifications.
How are commercial mortgage rates determined?
Commercial mortgage rates are priced off underlying benchmarks, typically the 5 year and 10 year U.S. Treasury yields or SOFR, plus a credit spread set by the lender. The spread is driven by loan to value, debt service coverage ratio, debt yield, property type, location, lease quality, borrower experience, and prepayment structure.
What factors affect commercial mortgage rates?
The biggest drivers are the benchmark Treasury or SOFR rate, loan to value ratio, debt service coverage ratio, property type, tenant credit quality on leased assets, market and submarket strength, loan term, amortization, recourse versus nonrecourse, and the borrower financial profile. Stronger metrics across these factors produce lower commercial mortgage rates.
How do commercial mortgage rates compare to residential mortgage rates?
Commercial mortgage rates are typically higher than residential mortgage rates because commercial loans carry more credit risk, shorter terms, balloon payments, and are usually underwritten to property cash flow rather than the borrower's personal income. Commercial loans also often require larger down payments and stricter debt service coverage.
What is considered a good commercial mortgage rate?
A good commercial mortgage rate is one that is competitive with current benchmark Treasury or SOFR pricing plus a reasonable spread for your property type and risk profile. As of June 1, 2026, starting rates from 5.54% on multifamily and 6.46% on CMBS are competitive market levels for well qualified borrowers.
Can I lock in a commercial mortgage rate?
Yes. Most commercial lenders allow rate locks once a loan application is approved or once the loan reaches commitment. Rate lock periods typically range from 30 to 90 days. Some agency multifamily programs allow early rate locks for an additional fee, which can be valuable in a rising rate environment.
How can I get the best commercial mortgage rate?
To secure the best commercial mortgage rate, present a strong loan package with conservative leverage, strong debt service coverage above 1.25x, a stabilized property with reliable cash flow, clean borrower credit and liquidity, and comparable lender quotes. Working with an experienced commercial mortgage broker who has relationships with agency, CMBS, bank, and life company lenders allows borrowers to source the most competitive pricing.
Ready to see what commercial mortgage rates you qualify for? Get a Free Quote