Commercial mortgage rates in BC explained
How commercial pricing is actually built, so you can tell a sharp quote from a lazy one. Updated September 2026.
Today's benchmark rates
Bank of Canada policy rate
2.25%
as of September 2, 2026
Prime rate
4.45%
as of September 2, 2026
5 year Government of Canada bond
3.48%
as of September 9, 2026
10 year Government of Canada bond
3.84%
as of September 9, 2026
CORRA
2.29%
as of September 8, 2026
Source: Bank of Canada. We refresh this page monthly.
The bond yield is the floor
Fixed commercial rates are priced off Government of Canada bond yields for a matching term. The five year bond is the reference for most five year money. When yields move, lender rate sheets follow within days, which is why a quote holds only for a stated window and why rate holds matter on a long closing.
The spread is your file
On top of the bond, the lender adds a spread for risk. Stabilised multifamily earns the tightest spread. Industrial and grocery anchored retail follow. Single tenant special purpose buildings, short remaining lease terms, high vacancy or a thin submarket all widen it. Covenant strength counts too: the same building with a national tenant and a ten year lease prices differently from one with month to month occupancy.
Here is what that looks like in numbers. With the five year Government of Canada bond at 3.48 percent, a stabilised multifamily building priced at the bond plus 1.5 percent lands near 5.0 percent before fees, while a single tenant retail building with three years left on the lease might price at the bond plus 3 percent or wider.
What commercial money costs in British Columbia right now
| Execution | Priced off | Typical spread | Typical leverage | Typical amortization |
|---|---|---|---|---|
| CMHC insured multifamily (MLI Select) | Canada Mortgage Bond | plus 0.5 to 1.0 percent | up to 95 percent | up to 50 years |
| Conventional multifamily | 5 year Government of Canada bond | plus 1.3 to 2.0 percent | up to 75 percent | 25 to 30 years |
| Conventional commercial (retail, office, industrial) | 5 year Government of Canada bond | plus 1.5 to 3.0 percent | 60 to 75 percent | 20 to 25 years |
| Owner occupied | 5 year Government of Canada bond | plus 1.5 to 2.5 percent | up to 75 percent, higher with government backed programs | 20 to 25 years |
| Construction | Prime | plus 1.0 to 2.0 percent | 65 to 75 percent of cost | interest only during the build |
| Bridge and private | Prime or flat rate | plus 3.0 to 6.0 percent, private commonly 8 to 12 percent | 65 to 75 percent | interest only |
Ranges reflect what we are seeing in the British Columbia market as of September 2026. Every file prices on its own merits and a quote only exists once a lender has seen the package.
What moves your spread
- Asset class and how easily the building re lets if the tenant leaves.
- Lease term remaining and the strength of the tenant covenant.
- Leverage requested against the appraised value.
- Borrower net worth, liquidity and experience with the asset type.
- Location within British Columbia and the depth of that submarket.
Insured versus conventional
On multifamily, CMHC insured financing sits in a different pricing world from conventional debt because the lender's exposure is insured. The trade is a premium, a longer process and program conditions you have to meet. MLI Select layers affordability, energy and accessibility commitments on top and rewards them with leverage, amortization and premium discounts. For a hold strategy the insured route is often the cheapest capital available in British Columbia.
Fixed, floating, term and amortization
Floating rates track the policy rate and suit short holds and files with a near term exit. Fixed rates buy certainty and prepayment cost. Longer terms usually carry a higher rate but remove renewal risk. Amortization does not change the rate itself, yet it changes the payment, and because the loan is sized on debt service coverage, a longer amortization frequently buys more proceeds than a slightly better rate would. Model both in the commercial mortgage calculator.
How a broker gets a sharper rate
Three things move pricing in your favour. Competing quotes: lenders sharpen when they know another lender is reading the same package. A complete, well presented submission: underwriters price uncertainty, and a file that answers questions before they are asked removes it. And the right execution: choosing between conventional and insured, first position and a structured second, changes the number more than negotiating ever will.
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