By : Radu Arvatescu
Shopping for a commercial mortgage in Ontario can be a complicated process. It’s also time-consuming. There are unique aspects of the commercial market that make things very different from private home mortgages. Understanding how a commercial mortgage broker can help will allow you to make the right choice for your business.
Here are the ways a broker will benefit your company.
Connecting With the Right Lender
There are risks involved when working with a single mortgage lender. Even if you complete the application process and provide all the requested documentation, there’s a chance that your mortgage won’t be approved. You could invest hours and days of your time with nothing to show for it at the end of the process.
Locating a lender is not easy, especially if you are a small business without a long financial history. A commercial mortgage broker maintains contact with numerous lenders, lawyers, and other professionals, allowing them to quickly find a package that suits your needs.
At the end of the day, a broker can provide options and the simplest way to connect with a suitable lender.
Finding the Best Commercial Mortgage Rate
Commercial mortgage rates are typically higher than in the residential market. Even so, there are cost variations between different lenders. A broker can help you to save money by identifying the most affordable lending terms. Whether you are looking for a fixed or variable rate mortgage, a commercial mortgage broker will become your advocate.
A broker will also be able to break down fee structures and hidden costs. You could easily miss important details if this is your first time to engage with the commercial mortgage market.
If you want the best rates, a broker is your best option.
Additional Support Services
Brokers aren’t lenders. Think of a commercial mortgage broker as your business partner in securing a loan. You can leverage years of expertise to make the entire process simpler, faster, and less stressful.
The best brokers build large networks of other lending professionals, legal experts, and business experts, allowing them to provide ongoing support throughout the exploration and signing process. You can learn more about commercial mortgages from a broker than you ever will when going directly to a lender.
Because a broker works for you, they won’t be pushing for signing on a mortgage that doesn’t suit your needs.
What About Commercial Mortgage Broker Fees?
Brokers charge reasonable fees for their professional services. You can look at this as an investment rather than a cost. The time spent on shopping for mortgages through various lenders could impact on your ability to run your business. A broker provides their own resources so that you can focus on your day to day tasks.
While you will pay a professional fee to work with a broker, the cost is typically offset by the time saved. You’ll also enjoy direct financial benefits from more competitive rates, legal advice, and reduced miscellaneous costs.
The home mortgage market is consumer-friendly and designed for simplicity. The commercial mortgage market is a completely different entity. Your skills are best applied to growing your business. A broker can make up for your lack of experience in the commercial market, resulting in a fairer loan that you can afford.
Whether you are starting a business, expanding, or investing in new premises, a commercial mortgage broker will always be the best starting point.
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.