Commercial mortgages finance income-producing properties like office buildings, retail centers, warehouses and apartment complexes. Use this guide and calculator to estimate your monthly payment and compare loan options.
Quick answer
Commercial mortgage payments depend on loan amount, interest rate (typically 6-8% in 2026), loan term (5-25 years) and down payment (usually 20-30%). Use our calculator below to estimate your payment.
Commercial mortgage calculator
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$7,012
Estimated monthly payment
How commercial mortgages work
Commercial mortgages differ from residential loans:
- Higher down payments: 20-30% typical (vs 3-20% residential)
- Shorter terms: 5-25 years common (vs 15-30 residential)
- Higher rates: 6-8% typical in 2025 (vs 6-6.5% residential)
- Income-based qualification: Property cash flow matters more than personal income
- Balloon payments: Many commercial loans have balloon payments after 5-10 years
Commercial mortgage rates (2026)
7.25%
Office/retail avg
7.50%
Warehouse/industrial
6.75%
Multifamily (5+ units)
Rates as of December 2026, vary by property type and borrower
Get commercial mortgage quotes
Compare rates from top commercial lenders for your property type.
Compare lendersTypes of commercial properties
Office buildings
Single or multi-tenant office spaces. Down payment: 25-30%, rates: 7-7.5%
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6.28%
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Retail properties
Shopping centers, strip malls, standalone stores. Down payment: 25-30%, rates: 7-8%
Industrial/warehouse
Manufacturing, distribution, storage facilities. Down payment: 20-25%, rates: 7-7.5%
Multifamily (5+ units)
Apartment buildings, complexes. Down payment: 20-25%, rates: 6.5-7%
Commercial mortgage qualification
Lenders evaluate:
- Debt Service Coverage Ratio (DSCR): Property income must be 1.25x+ loan payment
- Loan-to-Value (LTV): Typically 70-80% max (20-30% down)
- Property cash flow: Net operating income after expenses
- Borrower experience: Track record in commercial real estate
- Credit score: 680+ preferred, 650+ possible
Example commercial mortgage calculation
Scenario: Office building purchase
- Purchase price: 1,500,000
- Down payment (25%): 375,000
- Loan amount: 1,125,000
- Interest rate: 7.25%
- Term: 20 years
Monthly payment: 8,783
Total interest over 20 years: 982,920
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