Calculate Debt Yield (NOI ÷ Loan Amount) — the metric CMBS and institutional lenders prioritize over DSCR and LTV. Find your maximum loan amount based on target debt yield.
Two modes — calculate debt yield or find max loan
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Unlike DSCR, debt yield is independent of interest rate, amortization, and loan term. It measures the lender's return if they had to foreclose and operate the property. A 10% debt yield means the lender would earn 10% annually on their loan from the property's NOI alone — regardless of market rates.
DSCR can be manipulated by extending amortization (lowering payments) or using interest-only periods. Debt yield cannot be gamed — it depends only on NOI and loan amount. That's why CMBS lenders and life insurance companies use it as the primary underwriting constraint alongside LTV.
CMBS/Conduit: 8–10% minimum. Life insurance companies: 9–11%. Agency multifamily: 7–9%. Banks may not explicitly require it but will check. Higher debt yield = lower risk to the lender = better loan terms for you.
Increase NOI (higher rents, lower expenses, reduce vacancy) or reduce the loan amount requested. Unlike DSCR, you cannot improve debt yield by changing loan terms. Our advisors help you present the strongest NOI documentation to maximize your available leverage.
Minimum thresholds across different lending sources.
| Lender Type | Min Debt Yield | Typical Deal Size | Property Types |
|---|---|---|---|
| CMBS / Conduit | 8–10% | $3M–$50M+ | All stabilized CRE |
| Life Insurance Co. | 9–11% | $5M–$100M+ | Class A office, multifamily, industrial |
| Agency (Fannie/Freddie) | 7–9% | $1M–$50M+ | Multifamily only |
| National Bank | 8–10% | $2M–$25M | Diversified CRE |
| Regional/Community Bank | Not primary metric | $500K–$10M | All CRE, owner-occupied |
Common questions about debt yield in commercial lending.
Our advisors structure your deal to meet debt yield, DSCR, and LTV requirements simultaneously — maximizing your leverage with the right lender.
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