Roughly $297 billion in multifamily mortgages come due in 2026. The immediate problem is a refinance gap: many loans issued during the low-rate era can’t be replaced on the same terms without new owner cash or sales.
About $297 billion of multifamily loans—roughly 13% of $2.3 trillion tracked by the Mortgage Bankers Association—matures in 2026, with further large volumes due in 2027–2029.
The central risk is a refinance gap: many owners can cover interest but must inject fresh equity to refinance because property values and underwriting standards have moved.
Roughly $297 billion in multifamily mortgages are scheduled to mature in 2026, representing about 13% of the $2.3 trillion in multifamily loans tracked by the Mortgage Bankers Association. Another $223 billion comes due in 2027, followed by roughly $237 billion in both 2028 and 2029. The bigger concern, however, may not be the amount of debt maturing but whether apartment properties financed when rates were much lower can support the same amount of borrowing under current market conditions.
"Lenders are requiring more equity in situations where values have declined, and also are carefully underwriting to ensure there is sufficient debt service coverage," Fratantoni said. The risk was disproportionately concentrated in interest-only loans, which do not pay down principal during the loan term. Fratantoni cautioned that refinancing stress does not necessarily mean trouble for tenants, particularly if a property changes hands at a price that reflects current financing conditions.
The refinance gap is," a Trepp spokesperson told the Daily Caller News Foundation in emailed comments. "Many owners who borrowed when rates were low can still cover their interest payments but can't refinance at maturity without putting in significant new equity." The pressure is particularly concentrated among interest-only and floating-rate loans, according to Trepp. Multifamily commercial mortgage-backed securities (CMBS) delinquencies rose 46 basis points to 7.69% in July as loans in Ohio, Texas and New York became delinquent, according to a Trepp report.
Landlords nationwide are facing nearly $2 trillion in debt after going on a building and investment spree to take advantage of rising rents. As KTLA's David Lazarus explains, they went to banks and lenders and said they needed lots of money to buy lots of buildings to take advantage of rental increases -- and now [...]
Payments are doubling on maturing loans, and one veteran broker says creative refinancing is the answer
Limited review ends Aug. 3, and reserve minimums rise to 15% for applications dated Jan. 4, 2027
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