Commercial Mortgage Costs and Interest Rates

Commercial Mortgage Costs can vary quite a bit when it comes to commercial mortgages since commercial properties include a wide range of different kind of properties. The following costs are simply to provide a general idea of what fees to expect when it comes to purchase a commercial property. You may not need to incur all the following costs depending on the kind of commercial property that you are purchasing. 


Property Inspection Report

Usually necessary for the buyer especially if the buyer does not have a lot of experience in purchasing commercial properties to have to make sure that they are no surprises or issues that have not been disclosed. Many lenders usually do not require a property Inspection.

Starting at $1,500.00


Real Estate Appraisal for a Commercial Mortgage

Usually is required by the lender in order to confirm the value of the commercial property. Most often the mortgage will be base on the value of the appraisal. The appraiser must be approved by the bank. 

Starting at $1,500.00


Environmental Phase 1

An environmental report is not require all the times when purchasing a commercial property. It really depends on what of property you are purchasing. For example, if you are purchasing a gas station you will most likely be ask to provide a Phase 1 and most likely a Phase 2 Report but if you are purchasing a small apartment building  with no commercial space you may not require one. Some lender will ask for a self certification to be signed by the buyer. 

Starting at $2,000.00


Environmental Phase 2

An environmental Phase 2 report is only required if the Phase 1 Environmental report has concluded that a Phase 2 is recommended.

Starting at $4,500.00


Legal Fees

Legal fees may vary based on the kind of property that you are purchasing .

Starting at $2,500.00


Title Insurance

Starting at $1,300.00


Quantity Survey

Only required for specific properties

Starting at $2,500.00


Lender Fees Deposits

A lender fee deposit or application fee can be charged by the lenders to begin the process of reviewing your file. These costs vary by lender and can be refundable or non-refundable.

Varies by Lender


Lender Fees

Payable to the commercial mortgage lender or bank for arranging the finance. These fees can be either added to the mortgage or deducted from the mortgage at closing. This fees are determined based on the complexity of the deal and the time required to arrange financing and sometime based on the overall risk of the commercial real estate property and its location.

Starting at 1%


Broker Fees

Commercial mortgage brokers charge a fee for their service in locating the best financing solutions for their clients and to help the clients through out the application process. This fee is due on successful receipt of a formal mortgage offer and acceptance from the commercial mortgage lender. 

Starting at 0.5% of the amount financed


Interest Rates

Commercial mortgage rates can vary based on the type of commercial property that you are purchasing to how risky the deal is considered by the lender. To find out what kind of rates you maybe able to get for your commercial mortgage click here.

Varies by Lender