Commercial Mortgage Rates in Canada

There is no single commercial mortgage rate in Canada. What you pay depends on the type of loan, the property, how much you are borrowing against its value, and how strong the deal looks on paper. The tables below show current rate ranges by loan type and by property type so you can see roughly where your deal lands, and the sections further down explain how lenders arrive at the number.

These ranges are a guide for a typical strong borrower, not a quote. Every lender prices differently. For a real number on your deal, request a rate review.

Commercial Mortgage Rates by Loan Type

Each loan program is priced off a different base rate, so the ranges vary a lot from top to bottom. Click any loan type to see how that program works.

Commercial Mortgage Rates by Loan Type

The property is one of the biggest drivers of your rate. Lenders price each type on how steady and predictable its income is, so a full occupied apartment building costs less to finance than a hotel that lives and dies on nightly bookings.

Today’s Benchmark Rates

July 13, 2026

Here is what each one prices. Fixed-rate conventional loans usually track the Government of Canada bonds. CMHC-insured apartment loans track the Canada Mortgage Bond. Floating-rate and construction loans track Prime or CORRA.

How Commercial Mortgage Rates Work

Now for the part that explains every number on this page. Almost every commercial mortgage rate in Canada is built the same way: a base rate plus a spread.

The base rate is a market benchmark the lender does not control, like the Government of Canada bond yield, the Canada Mortgage Bond, or CORRA for floating loans. The spread is the extra percentage the lender adds on top to cover its costs and the risk of your specific deal.

In short: Rate = Base Rate + Spread.

A quick example. Say the 5-year Government of Canada bond is sitting at 2.76%, and a lender prices your deal at that bond plus 2.25%. Your all-in rate is about 5.01% before fees. Move either piece and the final number moves with it. The base rate is the market’s job. The spread is where your deal gets priced.

What Moves Your Spread

The base rate is the same for everyone on a given day, so the spread is where deals are won or lost. It moves based on:

• Property type and location. A stabilized apartment building in a major city prices better than a special-use property in a small town.
• How much you borrow against value. Lower loan-to-value usually earns a lower rate, because the lender has more cushion if anything goes wrong.
• Cash flow. Lenders want to see the property’s income comfortably cover the loan payments, with room to spare.
• Term and structure. The length of the loan, prepayment flexibility, and whether you sign a personal guarantee all factor in.
• Your strength as a borrower. Experience, net worth, and credit history matter.

Two near-identical buildings can be priced differently based on how well the file is put together. Clean financials and a clear, well-documented application often shave real money off the spread. That packaging is a big part of what a broker does for you.

How Commercial Rates Differ From Residential Rates

If your only experience is a home mortgage, a few things will surprise you.

Commercial rates are almost always higher, because the lender is taking on more risk and the loans are far less standardized. The term is usually shorter than the amortization too. A typical commercial loan might have a 5-year term but a 25-year amortization, so you make payments as if it were a 25-year loan but have to renew or refinance at the 5-year mark. And while a home mortgage is priced mostly on your personal income and credit, a commercial mortgage is priced largely on the property’s income. The building has to carry itself.

Glossary of Common Rate Terms

A few terms come up over and over when you talk rates. Here is the plain-language version.

• GoC: Government of Canada bond yield, the most common base rate for fixed commercial terms.
• CMB: Canada Mortgage Bond, the base rate for CMHC-insured apartment loans.
• CORRA: Canadian Overnight Repo Rate Average, the base rate for most floating-rate loans.
• Spread: The percentage a lender adds on top of the base rate to cover its costs and your deal’s risk.
• LTV (Loan-to-Value): The loan amount divided by the property’s value, shown as a percentage. Lower is usually cheaper.
• DSCR (Debt Service Coverage Ratio): The property’s net income divided by its loan payments. It shows whether the property earns enough to cover the mortgage.
• NOI (Net Operating Income): A property’s income after operating expenses but before the mortgage payment.
• Amortization: The number of years used to calculate your payments, even when the loan term is shorter.
• MLI Select: CMHC’s points-based program that rewards affordability, accessibility, and energy efficiency with better rates and terms.