By : Radu Arvatescu
As you explore the market and learn how to get a commercial mortgage loan, you will find that there are various approaches. Some borrowers go directly to large lenders and attempt to navigate the strict requirements and relatively high-interest rates. Others go to smaller commercial loan lenders, where the market is unregulated with even higher rates and less favourable terms.
The smartest buyers learn how to get a commercial mortgage loan and go directly to a broker. There are considerable advantages to doing this, and if you want fairer commercial mortgage loan terms with better rates, it’s an option you need to consider.
How to Get a Commercial Mortgage Loan Closed – Four Essential Steps
Exploring the commercial loan market can take hours out of your business day, with constant back and forth that can drag on for weeks if not months. The mortgage process is long for a reason. It’s complex and important. However, you can reduce the complexity when you work with a single commercial loan broker.
Brokers act on your behalf to find the best mortgage for your needs. They network with large lenders, smaller credit unions, and even unconventional lenders. If you were to go directly to the market, you could find that commercial mortgage loan terms and rates were uncompetitive. A broker filters out the bad offers so that you don’t have to waste time. This results in an easier process and real savings at closing and throughout the amortization period.
There are four primary steps in securing and closing a commercial loan:
1. Talk to a broker to determine documentation requirements and discover likely rates and terms.
2. Gather all requirements and make digital copies. Give these to your commercial loan broker so that they can prepare for applications on their side. More information is better.
3. Your broker will review your application and may come back with additional requirements. They will work directly with you to ensure that your documentation is bulletproof and ready to be accepted by lenders. It’s a good time to ask questions, from how to get a commercial mortgage loan with better rates, to the types of loans that might best suit your finances.
4. The broker now shops the market for the best terms and rates. This will be a two-way process where they provide options for you to determine which offers you want to move forward with. When the right commercial mortgage loan terms are available, you can move ahead to closing. Make sure that you are ready to answer questions from your broker at this stage. It’s also the right time to ensure that your down payment and closing fees are fluid and ready to be transferred.
Why Choice Matters in the Commercial Loan Market
These steps are similar to what you would experience going directly to a lender, with one major difference: You will only need to complete the application process once.
Your broker will use your initial application to connect with lenders. A submission will only be made when you have agreed on the lender and commercial mortgage loan terms that are available. Time savings are significant. Because a broker will find the lowest rates, you’ll come out better off, even when paying the brokerage fee.
Having a choice means that you can make an informed decision. You’ll also have access to mortgage packages that aren’t typically available when dealing directly with lenders.
Having learned how to get a commercial mortgage loan, you’re now in a better position to get your next investment moving. Work with a trusted Ontario broker and enjoy the best commercial mortgage loan terms available.
Lowest Residential Mortgage Rates in Canada*
|Term||OUR RATE||TD Bank Rate|
|3 Year Fixed/ 25 yrs||5.89%Promo||6.53%|
|4 Year Fixed/25 yrs||5.54% Promo||6.32%|
|5 Year Fixed/ 25 yrs||5.39% Promo||5.81%|
|5 Year Variable/ 25 yrs||6.20% Promo||7.15%|
|5 Year Fixed/ 30 yrs||5.99% Promo||6.39%|
|5 Year Variable/30 yr||6.80%||7.25%|
|3 Year Fixed/30yr||6.64% Promo||6.81%|
|**NEW RENTAL 5 Year Fixed /30yr||6.44% Promo||6.44%|
|** NEW RENTAL 3 Year Fixed /30yr||6.68% Promo||6.68%|
Updated: DEC 05 , 2023
* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion.Some condition may apply.Rates may vary between geographic regions and the posted rates on this website may not be available in your area.TD Bank rate used for comparable are the rate listed in the Broker Chanel Portal by TD Canada Bank at the date above. Please contact our MCI office for more details and current promotions.
LOWEST REGULAR RATES IN CANADA* * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.