Refinancing
Commercial Mortgage Refinancing
Lower your rate, unlock equity, or consolidate debt. We structure refinancing solutions that strengthen your portfolio and improve cash flow.
Lending Parameters
Why Refinance
Five Reasons to Refinance Your Commercial Mortgage
A well-timed refinance is one of the most powerful tools in a commercial property owner's strategy. Here is how it can work for you.
Reduced Payments
Lock in a lower interest rate or extend your amortization to meaningfully reduce monthly carrying costs and improve your bottom line.
Equity Disbursement
Access the equity you have built in your property. Use the proceeds for acquisitions, renovations, business expansion, or any other purpose.
Enhanced Cash Flow
Restructure your debt to free up operating capital. A well-timed refinance can transform your property's financial performance.
Growth & Leverage
Use your existing portfolio as a springboard. Refinancing can provide the capital needed to acquire additional properties or fund development projects.
Debt Consolidation
Combine multiple loans, lines of credit, or high-interest debts into a single commercial mortgage with one predictable payment and a lower blended rate.
This Is Right for You If…
Your current mortgage is approaching renewal and you want better terms
You have built significant equity and want to access it for new opportunities
You are carrying multiple debts across different properties or credit lines
Your property has increased in value and you want your financing to reflect that
You need to restructure debt to improve cash flow or satisfy covenant requirements
Common Questions
Refinancing FAQ
The most strategic time to refinance is 90 to 120 days before your mortgage renewal date, when you have full flexibility to switch lenders without penalty. However, refinancing mid-term can also make sense if rates have dropped significantly, your property has appreciated substantially, or you need capital for a time-sensitive opportunity. We analyze the cost-benefit of early refinancing including any applicable prepayment penalties.
Prepayment penalties vary by lender and mortgage type. Fixed-rate commercial mortgages typically carry an interest rate differential (IRD) penalty or a percentage of the remaining balance, often 3 to 6 months of interest. Variable-rate mortgages usually have lower penalties, sometimes as little as 3 months of interest. We calculate the exact penalty cost against the savings from refinancing to ensure the move makes financial sense.
Most institutional lenders require a debt service coverage ratio (DSCR) of 1.20x or higher, meaning the property's net operating income must exceed the proposed mortgage payments by at least 20%. Some lenders will accept 1.10x for strong borrowers or prime locations. If your DSCR falls below these thresholds, we have alternative and private lenders who evaluate deals with more flexibility around cash flow metrics.
Yes, though the lender pool may be narrower. Properties with Phase I or Phase II environmental reports showing contamination, or those requiring significant structural repairs, can still be refinanced through specialized lenders in our network. The key is presenting a clear remediation or repair plan alongside the financing request. We frequently work with properties that other brokers consider too complex.
See What Refinancing Can Do for You
Send us your current mortgage details and we'll show you what better terms look like from our network of 40+ lenders.