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Commercial Mortgage Rates

Want up-to-date information about the latest commercial mortgage rates? On this page you’ll find info about commercial loan rates and commercial mortgage trends from the real estate loan experts at Clopton Capital. Uncover the keys to commercial real estate loan rates, why they move the way they do, and what it means for you as an investor.

Any investor looking to finance commercial property must ask themselves two important questions:

  • What are the current loan rates?
  • What can affect them in the future?

Seasoned commercial mortgage brokers at Clopton Capital offer the most competitive commercial mortgage loans in the country.

Below are the current mortgage rate ranges

Multifamily Fixed Rate LoansLow RangeHigh Range
5 year 4.55%5.65%
7 year 4.65%5.75%
10 year4.70%5.80%

Multifamily property loan terms:

  • Up to 80% loan to value for acquisitions and refinances
  • Up to 35 year amortizations
  • Interest only periods available
  • Cash out available
  • non-recourse & recourse options
  • Flexible prepayment penalties
Commercial Fixed Rate LoansLow RangeHigh Range
5 year 4.75%5.75%
7 year 4.85%5.85%
10 year4.90%5.90%

Commercial property loan terms:

  • Up to 75% loan to value for acquisitions and refinances
  • Up to 30 year amortizations
  • Interest only periods available
  • Cash out available
  • non-recourse & recourse options
  • Flexible prepayment penalties
Bridge Loan RatesLow RangeHigh Range
Multifamily5.5%8.5%
Commercial 6%9%

Bridge loan terms:

  • Up to 85% loan to cost for acquisitions and refinances
  • Interest only
  • Cash out available
  • non-recourse & recourse options
  • Proceeds used for transitional strategies, quick closings, situations where traditional lenders cannot close

What is a commercial real estate loan?

A commercial real estate loan is any loan used to make a purchase or take an action on a property related to a business venture. Commercial mortgage loans can be used to fund everything from hotel purchases to motels, apartment complexes, condo complexes, office spaces, and much more. In many respects, commercial real estate loans are like any real estate loan— though commercial property loan rates can differ from residential loans. They sometimes require an origination fee.

commercial mortgage rates

What types of properties qualify for a commercial loan?

Most property types that can be used to generate income can qualify for a commercial mortgage loan. That includes hotels, motels, apartments, office buildings, industrial spaces, warehouses, self-storage facilities, retail centers, condo complexes, and other multifamily real estate acquisitions. If you have questions about your specific property qualifies for a commercial real estate loan, contact Clopton Capital today and we’ll be happy to help.

How are commercial loan rates determined?

In general, the average commercial loan rates are determined by the market. Interest rates can dip low and then climb back up again depending on a range of factors impacting the economy at a given point in time.

On a case by case basis, your commercial loan rates are determined by your creditworthiness, loan terms, and other details. The best commercial mortgage rates are usually reserved for those with good credit, ability to make a substantial downpayment, and a history of on-time payments of other loans.

Why use a commercial real estate loan?

Commercial real estate properties can be incredibly lucrative, but most people don’t have the large amount of capital required to purchase them in cash. That’s where a commercial real estate loan comes in. These loans give you the up-front cash required to purchase the property, which is then paid back to the lender over time as a commercial mortgage. In this way, you can think of commercial mortgage loans as being very similar to residential mortgage loans you might use to purchase a house.

Everyone from large corporations to small business owners can use commercial real estate loans to buy an investment property, improve or renovate existing investment properties, or complete other tasks using business loans.

Commercial real estate loan types

While all commercial real estate loans follow the same bird’s-eye-view structure, there are unique loan types for specific situations. A bridge loan, for example, is designed to have a short term lasting six months to a year. These loans provide funding necessary to make a purchase until more long-term funding can be made available. Bridge loan terms differ from a traditional loan product in that they have short periods and high interest rates — though the interest rate isn’t too consequential considering the short term of the loan.

What is the difference between residential and commercial interest rates

Residential and commercial interest rates tend to follow the same general trends, though they can differ by degrees. In general, commercial business loan rates tend to have higher interest and shorter loan terms.

Average commercial real estate loan rates for 2021

Currently, the average interest rate for a commercial real estate loan ranges from 2% to 18%. This wide range in commercial business rates occurs because every borrower is so different, offering different levels of creditworthiness, loan type, and other terms. The type of loan and size of the loan also affects the interest rate.

Average commercial real estate loan rates by loan type

Wondering what the average commercial real estate loans are for the loan type you’re seeking? Here are some of the most common commercial loan types and their current interest rate ranges as of 2021, also accounting for floating rate fluctuations and including SBA loans.

  • SBA (Small Business Administration) 504 Loan: 2.2 – 2.4%
  • SBA 7(a) Loan for small business financing: 5.5 – 11.25%
  • USDA Business & Industry Loan: 3.25 – 6.25%
  • Traditional Bank Loan: 5 – 7%
  • Construction Loan: 4.75 – 9.75%
  • Conduit Loan: 3 – 4.6%
  • Fannie Mae Apartment Loan: 3 – 4.4%
  • Freddie Mac Apartment Loan: 3.2 – 3.5%
  • Bridge Loan: 4.2 – 13.2%
  • Hard Money Loan: 10 – 18%

Average commercial real estate loan rates for investment properties

When it comes to commercial real estate loan rates for investment properties, rates can range anywhere from 2.2% to 18% or higher depending on the specific loan. If you want answers about your specific circumstances and what kind of rates you can expect, contact Clopton Capital today for answers.

Choosing the right commercial real estate loan

How do you know which type of real estate loan is right for you? Consult the experts. If you’re not sure what type of loan would offer you the best rates, loan size, loan to value ratio, and maximum term, speak with one of our experts at Clopton Capital.

commercial mortgage loan

What determines commercial leveraging finality?

The posted mortgage loan rates are very important guidelines. However, one should not interpret these rates as an offer to loan.

Why? The simple answer to this question is that fixed rates and variable rates are hugely deviating items. In other words: they depend on several factors.

Here are some of the several factors that determine the commercial mortgage rates:

  • Bank or credit union
  • line-of-credit
  • broker network
  • debt type
  • repayment option
  • loan term option.

Further, an underlying assumption of all rates as provided is application to a commercial mortgage at 75% LTV. Naturally, lower LTV generally demands lower commercial mortgage rates.

Bottom line: The index rates are dynamic and rely on several factors. You need a professional broker to guide you for commercial real estate loans.

Once again: Our tables reflecting current index rates and spreads apply for “today” as we see them and they should be regarded strictly as a guideline.
We will cover more about why you need a professional broker as a guide for commercial real estate loans in the rest of this article.

Commercial mortgage extras

Looking for even more answers to your commercial mortgage questions? In this section, we’ve provided a short guide to the benefits of commercial mortgages, rate trends to watch in 2021, and even a commercial mortgage rates calculator designed to give you a baseline idea of what kind of rates you can expect based on your specific loan type and terms. Remember— these are all designed to serve as a general guide. For more specific, up-to-date information, speak to our commercial real estate team at Clopton Capital.

Commercial mortgage benefits

There are many benefits that come from securing a commercial mortgage. First and foremost, it allows you to buy a property now rather than waiting, potentially for years, to build up the capital to buy it in cash. Securing a loan to make a purchase today means that you could start earning returns from the property right away, allowing you to not only offset the mortgage payments but make a profit above and beyond them.

Commercial mortgages also allow you to take advantage of trends as they happen, rather than waiting to secure capital without incurring debt. If there’s an opportunity that arises today that you don’t want to miss, a bridge loan can let you get quick funding to take advantage of it.

Commercial mortgage rate trends in 2021

Commercial mortgage rates in 2021 are at historic lows, though they aren’t expected to stay that way. As the economy recovers and continues its upswing, interest rates will likely rise in the coming months, though they should still remain relatively low for some time.

Commercial mortgage rates calculator

Use our calculator to get a general approximation of what kinds of mortgage rates you can expect for a commercial loan in 2021. If you have questions, feel free to reach out to us directly for more up-to-date info.

Key drivers of commercial mortgage rates

  • Inflation: Inflation simply means rise in price level in an economy over the period of time. Principle and interest rate rise and fall in sympathy with inflation. In other words, higher the inflation rate, higher are the mortgage rates.
  • GDP: Gross Domestic Product readings are another core driver of interest rates. Higher perceived growth can lead to higher interest rates as it pressures inflation and demand for capital. Conversely, as it contracts, you should see interest rates go down.
  • Employment Data and Payroll: A tight labor market invariably leads to an increase in hourly wages, seen as inflationary. This would pressure interest rates upwards across the yield curve. On the other side of the coin, higher unemployment and lower payroll wage numbers push rates down.
  • Commercial Mortgage Rate Spreads: Commercial Mortgage Rate Spreads are another core driver of interest rates. Spreads are determined by supply/demand for capital and risk. As the supply of capital goes up, the lower spreads will be and as the demand for capital goes up, the higher spreads will be. Learn more about current commercial mortgage rates.

Commercial mortgage rates FAQ

Can you get a 30 year mortgage on commercial property?

While 30-year commercial mortgages do exist, they’re relatively rare and usually only come from non-bank commercial real estate lenders.

Are commercial mortgage rates higher than residential?

Generally, yes. Commercial mortgage rates follow many of the same up-and-down trends of residential rates, but they tend to be slightly higher.

How much is a commercial mortgage?

This number can range depending on the mortgage itself. Use the calculator above on this page for a rough estimate.

How much deposit is required for a commercial mortgage?

Most commercial loans require between 10% and 25% down, while some specific loan types (such as hard money loans) may require as much as 40% down.

What are historical commercial mortgage rates?

Historically, commercial mortgage rates have fluctuated widely alongside the market. They have been as low as 2% and as high as 5% on average.

What to consider when shopping for a commercial mortgage?

Your primary consideration when shopping for a commercial mortgage should be the benefits of an experienced broker, who can wade into the complex world of commercial lending to find you the perfect lender, the perfect terms, and the perfect repayment rate for your needs.

How to get a commercial real estate loan

Looking to secure a commercial real estate loan? Your best bet is to work with a qualified broker. We’ll handle every step of the process to make your path to a commercial loan as smooth, seamless, and fast as possible.
Commercial Mortgage Rates

Why choose a professional broker to review current commercial real estate loan rates

Here are some of the reasons you need a professional broker.

1. Best financing terms and commercial mortgage rates available

As discussed, the Interest rate movement and predicting its direction is extremely complex. Putting trust on professional brokers like Clopton Capital will ensure that right adjustments are made and the clients get the most attractive commercial loan rates in the industry.

2. A renowned mortgage broker is backed by the most competitive lenders

A renowned mortgage broker has a longstanding relationship with the competitive mortgage lenders. At Clopton Capital, we waste no time in negotiating the best rates from an array of lenders ready to support your project.

3. A reliable professional broker is known nationwide

Quality and Reliability is the key to satisfy customers and therefore, investors trust the most reliable brokers. At Clopton Capital, we cover every US city, town and rural region connecting your partnership, trust, corporation, LLC, Delaware Corporation, or estate – even foreign nationals – to refinancing capital, construction financing, office building funding, and equity lines of credit options as the case may be. Our reliability is the reason why we are known nationwide.

Why choose Clopton Capital?

Clopton Capital is one of the leading commercial mortgage brokers in the United States and is backed by professionally trained and experienced commercial real estate loan brokers. We have closed deals topping several $ billion over the last 10 years. Here are the benefits of working with us:

  • Our rates are attractive.
  • We deal in high value transactions ranging from $1 million to $40 million.
  • We are backed by the most competitive commercial mortgage lenders.
  • We operate and provide services everywhere in the United States.

Which real estate categories can benefit from our commercial loan interest rates?

The posted current commercial loan interest rates above apply typically to the following real estate categories:

Commercial Mortgage Rates
Current rates

Need a commercial mortgage loan right now?

Simply fill out the contact form or Call us at 866-647-1650. Our Chicago based professionals will make finding the best commercial mortgage very easy. Simply tell us the loan amount, property type, location and the desired period, our team will quickly provide you the quote.

Did you know that finding a commercial loan lender is very easy with us? The reason: we are backed by some of the most competitive commercial mortgage lenders. You simply need to fill out one small application and our team will do the rest.

Contact Us – 866-647-1650





    We’re able to quickly provide current commercial mortgage rates for any loan inquiry when given the loan amount, property type, loan to value, and desired fixed period. To get a soft quote on any commercial mortgage, simply fill out the contact form.

    When requesting your quote, be sure to include the following information:

    • Loan amount
    • Property type and location
    • Property value
    • Desired fixed period and amortization.