Commercial Mortgage Rates in Canada
How Commercial Mortgage Rates Work
Commercial mortgage pricing starts with a base rate (the market index on the left: GoC bonds, CMB, or CORRA). Lenders then add a spread to cover the cost of originating and servicing the loan and to reflect risk.
Your spread moves with the deal: property type and market, leverage (LTV), cash flow (DSCR/NOI), term and covenants, and sponsor strength. Two similar buildings can price differently based on how the file is packaged. Clean financials and a tight credit memo often earn better pricing.
tldr; Rate = Base Rate + Spread.
Spreads shown are ballpark ranges for a typical ‘A’ profile. Each lender has its own risk model, which considers the property, the applicant, and the broader market and economic conditions. Treat the below spreads as a ballpark on pricing, not a promise or quote. You can contact us to start an application.
Quick Example
– If 5-yr GoC = 2.76% and pricing is GoC + 2.25%, the all-in rate is ~5.01% before fees.
– A similar CMHC term at CMB + 0.95% will track the 5- or 10-yr CMB instead of GoC.
CMHC Apartment Mortgage Rates
Purpose & pricing: CMHC-insured multifamily loans aimed at stable, lower-risk financing; priced off CMB.
What it prices on: Underwriting strength (DSCR, LTV, stabilized NOI, unit mix), MLI Select points (affordability/energy), term and amortization, prepayment flexibility.
Typical range: CMB + 0.5% to 1%
Conventional Commercial Mortgage Rates
Purpose & pricing: Standard income-property loans from banks, lifecos, and credit unions; priced off 5- or 10-yr GoC bonds.
What it prices on: Property type and location, lease profile (tenant strength, rollover timing), sponsor net worth and recourse, structure and fees.
Typical range: GoC + 1.5% to 3%
Construction Financing Rates
Purpose & pricing: Short-term, draw-based loans during build; typically floating off CORRA.
What it prices on: Entitlements and de-risking (pre-sales or pre-leases, GMP, equity in), builder track record, contingency and interest reserve, take-out certainty (e.g., CMHC or term lender).
Typical range: Prime + 1% to 2%
Bridge & Private Mortgage Rates
Purpose & pricing: Short-term, flexible capital to move quickly or solve a gap; priced higher for speed and flexibility.
What it prices on: Speed, leverage, asset complexity or special use, exit strategy clarity and timing, lender fees (~1–3%) and extensions.
Typical range: Prime + 3% to 6%
Owner-Occupied Mortgage Rates
Purpose & pricing: Financing where your operating business occupies the real estate; generally priced off GoC bonds through banks and credit unions.
What it prices on: Business financials and global DSCR, industry risk, collateral mix, covenant strength. Typically fixed rate as a cost of funds plus a margin. Cost of funds would be from deposits or GICs.
Typical range: GoC + 1.50% to 3%
Glossary of Acronyms Used
GoC: Government of Canada bond yield (common base for fixed terms)
CMB: Canada Mortgage Bond (base for CMHC-insured terms)
CORRA: Canadian Overnight Repo Rate Average (floating-rate base)
LTV: Loan-to-Value (loan ÷ property value)
DSCR: Debt Service Coverage Ratio (NOI ÷ annual debt service)
NOI: Net Operating Income (income after operating expenses)
MLI Select: CMHC’s points-based program rewarding affordability, accessibility, and energy efficiency
GMP: Guaranteed Maximum Price construction contract (cost overrun risk sits with builder)
Lease rollover timing: How soon and how much of the rent rolls over—longer, staggered leases generally reduce risk
Today’s Mortgage Rates
November 15, 2025
|
Prime Rate |
4.70% |
|
5 Year GOC |
2.66% |
|
10 Year GOC |
3.08% |
|
5 Year CMB |
2.88% |
|
10 Year CMB |
3.47% |
|
CORRA 1 Mo Term |
2.42% |
|
CORRA 3 Mo Term |
2.35% |