Current Commercial Loan Rates
Commercial loan rates in April 2026 usually run from about 5.5% to 15%, depending on the product, the property, leverage, and how clean the deal is. Stabilized multifamily and owner occupied deals tend to price best. Bridge, hard money, and higher leverage deals price higher.
Use this page to benchmark quotes for commercial mortgages, SBA 504, SBA 7(a), DSCR, bridge loans, and hard money.
CMBS, bank commercial mortgages, and SBA 504
These tend to win on rate when the property is stabilized or owner occupied and the borrower can tolerate a slower process.
Hard money, bridge, and DSCR
You usually pay more for speed, flexibility, and lighter income documentation.
Comparing unlike loan products
A low rate with a 90 day close or a brutal prepay penalty is not automatically the better deal.
Rate snapshot by loan type
These are practical market ranges, not promised quotes. Your actual rate depends on leverage, DSCR, occupancy, sponsor strength, recourse, and prepayment structure.
| Loan type | Typical rate | Term | Down payment | Best fit |
|---|---|---|---|---|
| Commercial Mortgage Typical close: 30-60 days | 6% - 8% | 5-30 years (often 5-10 year terms with 25-30 year amortization) | 20-30% | Stabilized income properties |
| CMBS Loans Typical close: 45-90 days | 5.5% - 8% | 5-10 years (25-30 year amortization) | 25-35% | Large stabilized properties |
| SBA 504 Loans Typical close: 45-90 days | Below market (CDC portion ~5-6%) | 10-25 years | 10% | Owner-occupied commercial real estate |
| SBA 7(a) Loans Typical close: 30-90 days | Prime + 1.5% to 3.75% | 10-25 years | 10-20% | Small business owners |
| DSCR Loans Typical close: 2-4 weeks | 7.0% - 9.5% | 30 years | 20-25% | Real estate investors |
| Construction Loans Typical close: 30-60 days | 7% - 10% | 12-36 months (construction period) | 20-35% | Ground-up development |
| Bridge Loans Typical close: 1-3 weeks | 8% - 12% | 6-36 months | 20-30% | Value-add acquisitions |
| Hard Money Loans Typical close: A few days to 1 week | 9% - 12%+ | 12-18 months | 10-25%+ cash in | Fix-and-flip investors |
| Mezzanine Loans Typical close: 30-60 days | 10% - 18% | 1-7 years | Reduces equity to 5-15% total | Reducing equity requirement |
| USDA Business Loans Typical close: 60-120 days | Fixed or variable, negotiated with lender | 7-30 years by use of proceeds | 10% existing business, 20% new business | Rural owner-user businesses |
| Non-QM Loans Typical close: 2-4 weeks | 6.5% - 10% | 15-30 years | 10-25% | Self-employed borrowers |
What actually moves your rate
1. Property stability and cash flow
Fully leased, stabilized properties usually price better than vacant, transitional, or special use assets. If the deal depends on future leasing or heavy rehab, expect a higher rate or a different product.
2. Leverage and down payment
Lower leverage usually means better pricing. Borrowers trying to maximize proceeds often pay for it through a higher rate, more fees, or stricter reserves.
3. Credit, liquidity, and experience
Sponsors with strong credit, post-close liquidity, and relevant experience give lenders more confidence. First-time borrowers can still get funded, but pricing is usually less forgiving.
4. Loan size, market, and asset type
Larger loans in liquid markets usually get more lender competition. Small balance retail in a tertiary market will not price like a stabilized apartment deal in Dallas or Atlanta.
5. Recourse and prepayment
A lower rate can come with a recourse requirement or a painful prepay structure. CMBS may look cheap on rate and expensive on exit. Ask for the full tradeoff.
6. Timeline pressure
If you need to close in ten days, you are shopping a speed product, not a rate product. That usually pushes you toward bridge or hard money.
Budget the fees too, not just the note rate
Borrowers get in trouble when they chase the lowest headline rate and ignore points, third party reports, legal fees, or extension risk. The cheapest note rate is not always the cheapest loan.
- ✓Origination points: Often 1 to 3 points on bridge and hard money. Sometimes lower on bank debt, sometimes higher on small balance deals.
- ✓Appraisal and reports: Appraisal, environmental, engineering, survey, and legal can add real cost before closing.
- ✓Prepayment: Yield maintenance, defeasance, step-downs, or minimum interest can change the math more than a small rate difference.
- ✓Extension fees: If the business plan slips, bridge and construction loans can get expensive fast.
Quick borrower checklist
- 1Get quotes from lenders that actually do your product type. Use the lender match quiz if you are not sure where your deal fits.
- 2Ask for rate, points, required reserves, recourse, amortization, and prepayment in writing.
- 3Run the debt payment through the DSCR calculator if the property is income producing.
- 4Choose the lender that fits the business plan, not just the lowest headline number.
Which loan types usually win on rate?
Owner occupied real estate
SBA 504 is usually one of the best rate options if you can handle the paperwork and occupancy rules. SBA 7(a) can be more flexible when you also need working capital or goodwill financing.
Stabilized investment property
Commercial mortgages and CMBS loans usually price best when the asset is large enough, cash flowing, and in a liquid market.
Speed or transition deals
Bridge loans, hard money, and sometimes DSCR win because they fit the timeline, not because they are cheapest.
Need a refinance benchmark?
If your plan is short-term debt now and cheaper permanent debt later, read Bridge-to-DSCR Refinance. If you are deciding between SBA structures, read SBA 7(a) vs. 504.
Frequently asked questions
What are commercial loan rates right now? ▼
As of April 2026, commercial mortgage rates are often around 6% to 8%, CMBS is often around 5.5% to 8%, DSCR is often around 7% to 9.5%, bridge loans are often around 8% to 12%, and hard money is often around 9% to 12%+, depending on leverage, project risk, and how fast you need to close. SBA 7(a) pricing usually floats at Prime plus a spread, while SBA 504 pricing depends on both the bank piece and the CDC piece.
What affects my commercial mortgage rate the most? ▼
The biggest levers are property stability, leverage, debt coverage, borrower credit and liquidity, loan size, asset type, market strength, recourse, and how flexible you are on prepayment. A fully leased multifamily deal with 30% down should price much better than a transitional retail deal with thin cash flow and a rushed close.
Are SBA loans usually cheaper than conventional commercial loans? ▼
Often, yes, especially SBA 504 for owner occupied real estate. But SBA loans come with more paperwork and longer closing timelines. Conventional bank debt can still be competitive if the property is strong and the borrower has a solid banking relationship.
Why is my quoted rate higher than the range I see online? ▼
Published ranges are market snapshots, not guarantees. Your quote can move higher because of low DSCR, weaker credit, short term leases, special use property, small balance loan size, cash out, lower reserves, or a faster close. Fees and prepayment structure also matter, not just the note rate.
How do I get a better commercial loan quote? ▼
Bring a clean package, increase your down payment if you can, show strong liquidity, explain the exit clearly, and compare multiple lenders that actually do your deal type. Shopping a bridge lender against a bank lender is not useful. Compare like for like.
Compare lenders that fit your actual deal
Rates matter, but lender fit matters more. Tell us what you are buying, how fast you need to close, and how much leverage you want.