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Commercial Property Mortgage Rates: How Do They Work?

And how do they differ from residential mortgage rates? We will also be looking at terms, because terms work so closely with rates.

Commercial property rates work quite differently from residential property rates. Generally with commercial property rates, the higher the number of years of a loan, the higher the interest rate, while with residential property rates, the higher the number of years of a loan equals a lower interest rate.

Most of the time with commercial rates you get terms with a lower number of years than with residential rates. For example, if you are to get an apartment loan, you will likely have terms of 3, 5, or 7 years – at times 10 years, but over 10 years is not common. With residential loans, you can easily get a 30 year term.

Also, it’s important to note that commercial property mortgage rates and terms vary with the type of commercial property you purchase. For example, you’ll find differences between rates and terms in buying a shopping center, a multifamily property, a restaurant, or a Walgreens.

The question may come up “if commercial property rates are higher than residential commercial property rates, why get involved in commercial property investing?” The answer is that you have the advantage of leveraging. Instead of purchasing one residential property after another in one commercial property investment, you could acquire 50 units in an apartment complex. Of course, you must also qualify.

Contact us to see if you qualify for our best multifamily, commercial, bridge, or business loan rates and terms. Keep in mind that one of our specialties is commercial bridge lending. Also, contact us if you would like to discuss your particular commercial lending needs, or if you have questions. Call or text 214-695-7310, or send an email to

To discover more about our loan products as well as rates and terms, see our loan programs page.

Bruce Painter, Director of Marketing, Business Loan Store


Getting the right loan and the lowest rate requires wisdom and finesse. If you’re ready to partner with a team of professionals who’ve built a foundation on straight talk and true strategy, we are the loan store for you.


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HUD Loans are one of the best options with the current level of interest rates. For a complete guide to HUD Multifamily Loans please go here:

HUD Multifamily Loans - The Complete Guide