What are the current commercial mortgage rates today?
As of January 12, 2026, commercial loan rates typically range between 5.14% and 12.75%. For conventional commercial mortgage rates, expect a range of 5.14% to 8.75%, depending on property type and borrower credit.
Investors tracking loan rates in January, 2026 must account for rapid market shifts. Whether you are seeking a commercial mortgage for a new purchase or evaluating a refinance, staying current is essential. Today's commercial loan rates are pegged primarily to Prime, Treasury, and SOFR indexes.
Underwriting for current mortgage rates depends on LTV (Loan-to-Value), DSCR (Debt Service Coverage Ratio), and property usage. While we offer programs across all asset classes, actual loan rates vary based on the strength of the sponsor and the primary market location.
Conventional mortgages are loans offered by FDIC-insured institutions such as banks or credit unions. They typically require a personal guarantee and an underwriting of the global cash flow of the guarantors, including personal and business tax returns. This loan product can be used for investment or owner-occupied properties.
Loan Amount $1,000,000+* Not available for all properties in all markets** Priced on a per-transaction basis
Private Banking is provided to offer Borrowers with high net worth and liquidity preferred terms and discounted interest rates. In order to provide this service the lender might request a depository or a private wealth management relationship with the loan Sponsors.
Loan Amount $1,000,000+* Not available for all properties in all markets** Priced on a per-transaction basis*** Borrowers must qualify for the Private Banking relationship program. Principals must have >$3Million liquid assets and >$10Million net worth
A CMBS/Conduit mortgage is a non-recourse loan provided by a financial institution that securitizes the loans after closing by pooling the loans together and offering bonds collateralized by the underlying real estate. Used only for investment properties.
SBA 504 is a loan product guaranteed by the Small Business Administration for the financing of owner-occupied real estate and/or machinery and equipment. LTVs go up to 90% and may be used for construction or existing properties.
Loan Amount $750,000+* Not available for all property types** SBA debenture rate only
SBA 7a is another loan product guaranteed by the Small Business Administration, but may be used for the financing of owner-occupied, real estate, machinery, equipment, inventory, FF&E, or working capital. LTVs go up to 80% and may be used for construction or existing properties.
Loan Amount $750,000+* Not available for all property types
A USDA loan may be used for the acquisition or construction of commercial real estate, purchase of machinery or equipment, or establishment of working capital. It is only available in eligible rural areas with populations of 50,000 or less.
Loan Amount $1,000,000-$25,000,000* Not available for all property types** Priced on per-transaction basis
(Life Company/LifeCo): Typically the most conservative and competitive of all the products, most insurance lenders prefer newer, high-quality properties at low leverage in major markets and very experienced investors. This product can be used for stabilized properties (or construction in some circumstances).
* Not available for all property types
Bridge loans are used for the light renovation and/or re-stabilization of an investment property. These are typically higher interest rate loans and are used short-term (6-36 months) until the property is fully renovated and re-stabilized. After the property is fully stabilized, the borrower can seek one of the other lower-interest rate loan products mentioned in this section.
Loan Amount: $1,000,000+* Not available for all property types or areas; may calculate using LTC instead of LTV** Interest-Only
Construction loans are used for the substantial rehabilitation, redevelopment, or ground-up construction of a property. Interest rates can range substantially depending on the lender, property type, market, and loan product.
Loan Amount: $3,000,000+* Not available for all property types or areas; may calculate using LTC instead of LTV** Interest-Only
This is a hybrid security of debt and equity that is put onto a property in a second-lien position (behind another “senior secured” lender) when the borrower cannot get a LTV that is high enough to finance a specific piece of commercial real estate. It can be used for both either the acquisition or refinance of an investment property.
Loan Amount: $1,000,000+* Not available for all property types or areas** Usually used in conjunction with CMBS loans, following the same underwriting standards
A key market interest rate is a benchmark used by financial institutions and central banks to set the cost of borrowing and the yield on savings throughout the economy. These rates serve as the "price of money," influencing every form of credit facility from card APRs to corporate bonds.
Key market rates fluctuate based on Federal Reserve policy updates, monthly Inflation (CPI) Reports, and global labor market stability. When these rates rise, borrowing becomes more expensive to cool inflation; when they fall, it encourages spending and business investment. For real-time updates on how these benchmarks affect your finances, you can track daily fluctuations here as we update our rates daily.
Track Libor, Prime, Swap, and Treasury rates and get notified by push notification, email, or text when the rate falls below or above a selected value.
Commercial Loan Rates Notifications
Hard Money Loans are offered by private investment institutions for the financing of properties that are not “bankable” due to borrower credit issues, property issues, or other reasons. Because of the extremely high interest rates (typically 12%+), we don’t recommend using this product unless the Borrower has significant experience with this type of loan and can refinance out or sell the property within a short, set time frame.
Fannie Mae is a non-recourse multifamily loan product offered for experienced investors with properties in primary or secondary markets; tertiary markets only considered on an exception basis and requires a waiver. Click here for apartment loan rates.
Freddie Mac is another non-recourse multifamily loan product offered to experienced investors with properties in major markets. The main difference between this product and Fannie is the available structures for its small balance loan program (i.e. hybrid, step-down prepayment penalties). Click here for apartment loan rates.
FHA is a non-recourse mortgage product that is federally guaranteed by the Federal Housing Authority’s Department of Housing and Urban Development (HUD). It can be used for multifamily properties or various medical facilities such as assisted living or hospitals.. Click here for apartment loan rates.
In order to qualify for a commercial loan, a property must be zoned appropriately for either business/commercial or multifamily use. This would include the following types of buildings:
Residential properties (i.e. single-family dwellings with 4 units or less) usually have much lower interest rates available than commercial properties. Additionally, the term and amortization typically match on a residential loan (i.e. 30/30), whereas the term of a commercial loan is usually shorter than the amortization (i.e. 7/25), causing the borrower to have to refinance or payoff the loan (or sell the property) at or before the end of the loan term.
Commercial interest rates may be calculated a variety of ways depending on the lender’s internal cost of funds. However, the most common way a lender calculates an interest rate is by taking a an index (i.e. LIBOR, treasury, swaps, FHLB, etc.) and adding a “spread” to that index, which is what the lender is making off of the loan. For instance, if the lender is pricing at LIBOR (currently at 0.000% + 2.00%), your interest rate would be 2>%.
Commercial Loan Direct is a business division of CLD Financial, LLC a leading national commercial correspondent lender with a focus on small, mid-size, and large balance multifamily loans and commercial loans. CLD is a member of the Georgia Lenders Quality Circle, the National Mortgage Bankers Association, and is ranked with an A by the BBB (Better Business Bureau.)
Note: The commercial mortgage rates displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any commercial mortgage interest rate or data entry errors that might affect the displayed commercial loan rates. Commercial loan rates may change at any time and without notice.
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What Clients Say About Us
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
- Nirav Patel
If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
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We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
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