Commercial mortgage-backed securities (CMBS) loans are becoming increasingly popular for commercial property investors, as they offer a range of advantages compared to traditional financing options. CMBS loans provide investors access to greater amounts of capital, longer repayment terms, and lower interest rates than other types of debt. Furthermore, these loans can be used to finance the purchase or refinancing of virtually any type of income-producing real estate asset. Below, we’ll look at why commercial property investors should consider CMBS loans when seeking funding solutions.

What is a CMBS loan?

CMBS loans can be used for a range of commercial property investments, including apartment buildings, office complexes, and shopping centers. They offer attractive terms with fixed interest rates and longer loan maturities than traditional financing options. This provides investors with greater financial flexibility when managing their properties over the long term. Additionally, CMBS loans typically feature lower interest rates than other types of debt. Which provides investors with the opportunity to save money on their financing costs.

Better Financing

Another key benefit of CMBS loans is that they offer a higher LTV ratio. This means that borrowers can finance the entire cost of a property without having to put any additional capital upfront. This makes them an ideal solution for investors who don’t have the cash reserves to cover a down payment. Additionally, CMBS loans can be used to refinance existing debt, allowing property owners to reduce their interest costs and potentially free up additional capital for other investments or operations.


Finally, it’s important to note that CMBS loans are non-recourse, meaning that the borrower’s personal assets are not at risk in the event of a default. This provides investors with greater protection than traditional financing options and reduces their overall level of risk.

Overall, CMBS loans provide commercial property investors with an attractive debt option for financing or refinancing their investments. By offering access to lower interest rates, longer repayment terms, and up to 100% financing, these loans provide investors with a range of advantages compared to other types of debt. As such, they should be seriously considered when looking for funding solutions. Contact BMF Advisors today to learn about our CMBS loans.