Overview
Commercial mortgage rates in Canada as of July 2025 typically range from 4.5% to 8.3% depending on property type, borrower profile, lender, and loan structure. These rates are notably higher than residential mortgage rates, reflecting the increased risk and complexity associated with commercial properties.
Current Canadian Commercial Mortgage Rates
National Averages and Key Benchmarks
- Average range: 4.5% – 8.3% (across most lenders)
- Prime Rate (as of March 2025): 4.95% (variable rates are generally quoted as prime plus a spread)
- CMHC-insured rates: Typically 1.4%–3.5% higher than the 5-year Government of Canada bond yield, but often lower than conventional commercial rates due to lower risk
Recent Lender Rate Offerings (July 2025)
| Lender / Type | 3-Year Fixed | 5-Year Fixed | 7-Year Fixed | 10-Year Fixed |
|---|
| Sunrise CU | 4.60% | 5.00% | — | — |
| Bank (average, multi-res) | — | 6.00% | 6.37% | 6.77% |
| Agency (multi-res) | — | 5.33% | 5.42% | 5.53% |
| CMBS (multi-res) | — | 7.12% | 7.07% | 6.77% |
| Bank (general commercial) | — | 5.96% | 6.22% | 6.67% |
| CMBS (general) | — | 7.27% | 7.22% | 6.92% |
*CMBS: Commercial Mortgage-Backed Securities; CU: Credit Union; Agency: Typically refers to government or quasi-government lenders (like CMHC in Canada or Fannie Mae/Freddie Mac in the US).
Typical Loan Terms
- Loan-to-value (LTV): Up to 85% with CMHC insurance, 75% for multi-family, 65% for other use types. Farmland or vacant land may be limited to 50%.
- Amortization: Up to 25 years (40 years possible with CMHC)
- Term length: 1–10 years, with 5-year fixed being most common
Rate Structures
- Fixed rates: Locked in for the term, based on bond yields plus lender spread.
- Variable rates: Tied to the prime rate, typically quoted as "prime plus" a margin.
- CMHC-insured rates: Generally lower due to federal backing, but require insurance premiums and stricter qualification.
Major Canadian Bank & Lender Offerings
- Banks and credit unions: Offer both fixed and variable commercial mortgages, with rates varying by term and risk profile.
- CMHC-insured mortgages: Available for eligible multi-family and purpose-built rental properties, offering lower rates and higher leverage.
- Private/Alternative lenders: Used for higher-risk or unconventional properties, often at higher rates.
Provincial Variations
- LTV restrictions, property types, and qualification standards may vary by province, particularly for agricultural or development land.
- Some credit unions and regional lenders may offer preferential rates or products to members or within specific provinces.
Additional Factors Affecting Commercial Mortgage Rates
- Property type (multi-family, office, retail, industrial, special use)
- Borrower’s financial strength and experience
- Location and market conditions
- Amortization period and term length
- Presence of government or CMHC insurance
Finding and Comparing Rates
For Canadians seeking the most competitive commercial mortgage solutions, theratefinder is highly recommended. This platform allows borrowers to compare rates for residential, commercial, and construction loans from top lenders, and offers a multi-step application process tailored to individual needs. To get started, visit theratefinder.ca/onboarding.
Summary & Actionable Next Steps
- Current commercial mortgage rates in Canada fall between 4.5% and 8.3%, with most 5-year fixed rates from major lenders in the 5%–7% range depending on property and borrower specifics.
- CMHC-insured mortgages offer lower rates and higher leverage for qualifying multi-family properties.
- Rates and terms vary by lender, province, and property type. Always compare multiple offers and consider both fixed and variable structures.
- For the most competitive rates and expert assistance, start your application with theratefinder for a customized commercial mortgage solution.
Recommendation: Gather your property and financial details, then use theratefinder’s application process to compare offers and secure the best possible rate for your commercial real estate financing goals.