The maturity wall is here.
If your commercial loan matures in the next 12 to 18 months, start planning now. The new loan will likely be smaller and more expensive than the one it replaces.
About $875 billion of commercial and multifamily mortgages is scheduled to mature in 2026, with another $652 billion due in 2027. Much of that debt has already been extended once, betting rates would fall.
That bet didn't pay off. The Fed raised rates a quarter point on September 16, 2026, its first hike since 2023, and the 10-year Treasury crossed 5% the same week. Lenders are also less willing to keep extending loans than they've been in years.
The result is a refinance gap. CRED iQ found that nearly one in four maturing agency and CMBS apartment loans can't refinance without new equity, with a median shortfall of about 15% of the loan. Loans written in 2021 and 2022 have and will be hit hardest.
The good news: most maturing loans can still refinance. The owners who come out ahead are the ones who start early and line up options before the lender forces the timeline.
When to start: your countdown to maturity
Start at least 12 months out. A typical commercial refinance takes 45 to 90 days to close once you pick a lender, and finding that lender, fixing problems and negotiating terms takes longer.
12 months out: run the numbers. Size a new loan at today's rates using your current net operating income. Compare it to your payoff. If the new loan falls short, you've found your equity gap early.
9 months out: clean up the property. Fill vacancies, renew key leases, finish deferred maintenance and get your T-12 and rent roll in order. Lenders underwrite what's in place, not what's promised.
6 to 9 months out: go to market. Get term sheets from several lender types. Review prepayment penalties and extension options in your current loan.
4 to 6 months out: pick a lender and order third parties. Sign the term sheet, pay deposits, and order the appraisal, environmental and property condition reports.
2 to 3 months out: lock in and close. Clear underwriting conditions, lock your rate and schedule closing with room to spare.
If it's slipping: talk to your current lender early. Ask for an extension before you need one, not the week of maturity.
Already inside six months? You still have options, but bridge lenders and extensions move to the front of the line.
Your refinance options compared
The right lender depends on how stable the property is and how much time you have. Banks remain the biggest source, but debt funds and other alternative lenders are filling more of the gap: they handled 40% of non-agency commercial and multifamily loan closings in Q4 2025, up from 23% a year earlier. Kings Pointe can help you find the perfect alternative lending partner.
Bank or credit union. Best for a stabilized property, a strong sponsor or an existing relationship. Trade-offs: tighter underwriting, recourse is common, shorter terms.
Agency (Fannie Mae, Freddie Mac). Best for stabilized multifamily, including small-balance programs. Trade-offs: multifamily only, slower process, prepayment penalties.
CMBS (conduit). Best for stabilized retail, office, industrial and hotels that need non-recourse, long-term debt. Trade-offs: rigid servicing, and defeasance or yield maintenance to exit early. Loan amount must be above 2MM.
Debt fund or bridge lender. Best for value-add, lease-up, tight timelines, or properties banks won't touch. Trade-offs: higher rate and fees, short term, needs a clear exit.
SBA 504 or 7(a). Best for owner-occupied property where the business uses most of the space. Trade-offs: the business must qualify, more paperwork, owner-users only.
Extension or modification. Best when a short delay will fix the problem, such as a lease-up or a sale in progress. Trade-offs: the lender may require a paydown, higher rate or new guarantees.
Get quotes from at least two lender types. The best loan amount and the best rate rarely come from the same place.
If the new loan won't cover the old one
An equity gap is the difference between what you owe and what a new lender will lend. Here's how one forms, using illustrative numbers:
Existing loan payoff (originated at 3.75%): $6,000,000
Property NOI: $500,000
Max annual debt service at 1.25x DSCR: $400,000
Max new loan at 6.5%, 30-year amortization: about $5,270,000
Equity gap: about $730,000
The property didn't lose a tenant. Higher rates alone shrank the loan by more than 12%. If you're facing a gap like this, you have five main paths:
Cash-in refinance. Pay down the balance with your own capital. Simplest option, if you have the liquidity.
Preferred equity or mezzanine debt. An outside investor fills the gap behind the senior loan. It costs more than senior debt, but you keep the property.
Bridge loan. Buys 12 to 36 months to raise NOI, then refinance into permanent debt at a higher value.
Extension or modification. Your current lender extends in exchange for a paydown, rate increase or reserves. Ask early; lenders have less patience than they did a year ago.
Sell or recapitalize. Bring in a joint venture partner or sell on your terms before the maturity date forces a sale on someone else's.
The worst path is waiting.
How a broker helps when the clock is running
A maturing loan is exactly the kind of deal traditional lending struggles with: tight timing, a smaller loan than expected, and often a structure that doesn't fit one lender's box.
We arrange and structure financing for commercial real estate transactions where traditional lending is constrained by complexity, timing or non-standard structure. On a maturity, that means:
Sizing the gap early, so you know your number before a lender tells you
Running several lender types at once, from banks and agencies to debt funds and SBA lenders
Structuring around the gap, pairing senior debt with preferred equity, a bridge, or a negotiated extension
Keeping the timeline, so you close before maturity instead of scrambling after it
Loan maturing in the next 18 months? Send us your current loan terms, rent roll and T-12. We'll size your refinance at today's rates and show you your options, before your lender does. Submit your deal →
Frequently asked questions
What happens if my commercial loan matures and I can't refinance?
The loan goes into maturity default. The lender can charge default interest, demand payment, or begin foreclosure. Most lenders would rather negotiate, so contact them before the maturity date.
How early should I start refinancing a commercial loan?
Start 9 to 12 months before maturity. That leaves time to fix property issues, compare lenders and close without a rush.
What is an equity gap in a refinance?
It's the shortfall between your current loan payoff and the largest new loan a lender will offer. Higher rates, lower values or weaker income can all create one.
Can I get an extension on a maturing commercial loan?
Often, yes, but expect conditions. Lenders may ask for a principal paydown, a higher rate, new reserves or added guarantees.
Is a bridge loan a good way to refinance a maturing loan?
It can be, if you have a clear plan to raise the property's value or income within one to three years. Without that plan, a bridge just moves the maturity date.
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For informational purposes only. Not a commitment to lend or a loan offer. Any financing is subject to credit approval, underwriting, due diligence, and execution of definitive loan documentation
