How much can I borrow on a CMBS loan?
By Brad Beattie, Director, Capital Markets, Janover Capital LLC · Published
A CMBS lender lends the least of three amounts: what your net operating income covers at its minimum debt service coverage ratio, a cap on loan to value, and NOI divided by a minimum debt yield. For multifamily loans securitized from Oct 2025 to Oct 2026, the medians were 67.3% LTV, 1.33x DSCR and 8.75% debt yield.
Worked example
A multifamily property worth $25,000,000 earns $1,500,000 of net operating income. At the multifamily medians (1.33x DSCR, 67.3% LTV, 8.75% debt yield), a 6.45% note rate and interest-only payments on an Actual/360 basis:
| Test | Math | Maximum loan |
|---|---|---|
| DSCR | $1,500,000 ÷ (1.33 × 6.540%) | $17,246,046 |
| LTV | $25,000,000 × 67.3% | $16,825,000 |
| Debt yield | $1,500,000 ÷ 8.75% | $17,142,857 |
The smallest is the loan to value limit, so the loan is $16,825,000. Its payment is $91,690 a month ($1,100,285 a year), a debt constant of 6.540%. To borrow more, the property needs more income (which lifts the DSCR and debt yield limits) or a higher appraisal (the LTV limit), or a lender with looser minimums.
Formulas
Max loan by DSCR = NOI ÷ (minimum DSCR × debt constant) Max loan by LTV = value × maximum LTV Max loan by debt yield = NOI ÷ minimum debt yield Loan = the smallest of the three Debt constant, interest only, Actual/360 = rate × 365 ÷ 360 Debt constant, amortizing = 12 × (r ÷ 12) ÷ (1 − (1 + r ÷ 12)^−n), n = amortization months
An Actual/360 loan charges interest for the actual days in each month on a 360-day year, so a full year of interest is 365/360 of the note rate. The conduit loans in the reference deal all accrue that way (BANK5 2025-5YR14 prospectus, "Payment Due Dates; Interest Rates; Calculations of Interest", p. 222). An amortizing loan pays a fixed installment, so its yearly debt service is twelve of them whatever the day count.
What the filings say about recent loans
| Property type | Loans | Median LTV | Median DSCR | Median debt yield | Full-term IO |
|---|---|---|---|---|---|
| Multifamily | 292 | 67.3% | 1.33x | 8.8% | 95% |
| Retail | 141 | 62.7% | 1.61x | 11.3% | 85% |
| Office | 87 | 59.6% | 1.84x | 13.5% | 82% |
| Hotel | 96 | 61.1% | 1.77x | 15.0% | 67% |
| Self-storage | 115 | 60.6% | 1.57x | 9.7% | 78% |
| Industrial | 64 | 63.5% | 1.49x | 10.9% | 86% |
| Mixed use | 66 | 62.5% | 1.42x | 10.0% | 89% |
| Mobile home park | 82 | 63.7% | 1.39x | 9.4% | 96% |
| Co-op housing | 89 | 10.3% | 6.93x | 52.6% | 27% |
| All types | 958 | 63.9% | 1.47x | 10.1% | 87% |
Loans securitized from Oct 2025 to Oct 2026, from each trust's SEC asset-level filings (Schedule AL). Underwritten figures at securitization. Methodology.
Sources
- SEC EDGAR Form ABS-EE asset-level data (Schedule AL) for CMBS trusts, as compiled by cmbs.news. Property-type medians and ranges for LTV, DSCR, debt yield and interest-only share (Oct 2025 to Oct 2026); note-rate medians (Jul 2026 to Oct 2026).
- BANK5 2025-5YR14 prospectus (Form 424B2, filed 2025-04-02). Actual/360 interest accrual on conduit loans, p. 222.
- U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates. Treasury yields for the Treasury + spread option.
Related: DSCR, debt yield, CMBS underwriting, interest-only CMBS loans, refinance calculator.
Questions people ask
How much can I borrow on a CMBS loan?
The least of three amounts: the loan your net operating income covers at the lender's minimum debt service coverage ratio, the maximum loan to value on the appraised value, and NOI divided by the minimum debt yield. Across all 958 conduit and single-borrower loans securitized from Oct 2025 to Oct 2026, the median loan was 63.9% of value, at 1.47x coverage and 10.1% debt yield.
What DSCR does a CMBS lender require?
There is no single rule; each lender sets its own minimum by property type and market. What the filings show is where loans actually closed: multifamily loans securitized in that window had a median DSCR of 1.33x, office 1.84x and hotel 1.77x. Riskier types close at higher coverage.
What is debt yield and why does it matter?
Debt yield is net operating income divided by the loan amount. It ignores the interest rate and amortization, so it caps the loan even when rates are low or the loan is interest only. A lender that wants a 9% debt yield will not lend more than NOI divided by 0.09.
Are CMBS loans interest only?
Most recent ones are. Of the loans securitized from Oct 2025 to Oct 2026, 86.5% paid interest only for the whole term. A full-term interest-only loan has the lowest payment for its size, so it sizes larger on the coverage test.
Does the result include closing costs or reserves?
No. It is the loan amount the three sizing tests allow. Lender fees, third-party reports, legal costs and upfront reserves come out of your proceeds or your equity, and the lender may also require ongoing reserves for taxes, insurance, replacements and leasing.
Want real numbers on your loan?
Janover Capital LLC is a commercial mortgage advisor, not a lender. Send the deal, and a person at Janover Capital will reply with how lenders are likely to size and price it.