By : Radu Arvatescu
With so much to consider when operating a business, searching for real estate can quickly become overwhelming. Even if you find the perfect location with a property that suits you, you’ll need to go through the mortgage application process.
If this is your first time to explore the commercial market, you’ll find that there’s a lot to learn. Finances, application rules, and documentation requirements can all add up.
While it is possible to search for and buy a commercial property without outside assistance, you could find that it is detrimental to your daily business tasks. Ontario commercial mortgage brokers can offer a better solution.
A commercial broker works for you by engaging with lenders to find the very best rates and terms. Learn what a commercial broker does and doesn’t do and make the right decision for your business.
How Ontario Commercial Mortgage Brokers Help You
There are two common ways to obtain a commercial mortgage in Ontario.
The first is to go directly through a bank or lending institution. You will manage the application, documentation, legal, and financial aspects. This is undoubtedly the worst way to shop for a commercial mortgage.
Exploring your options could mean talking to dozens of different lenders. If you find terms that suit, you could go through the entire application process only to be denied in the end, putting you right back where you started.
A commercial mortgage broker is different. A broker isn’t a bank or a lender. They will package your application and distribute it to a network of trusted lenders. They will choose the best lenders depending on your needs, your finances, and the type of property you are looking to buy. Brokers provide additional support services and maintain networks of lawyers and financial experts who specialize in real estate.
When you work with a broker you will provide all your information and documentation to a single point of contact. You don’t have to shop the market and a broker will actively seek the best rates.
Comparing the two, there’s no contest. A broker makes buying commercial property simpler and less stressful. Mortgage brokers work off commission fees that are typically less than 2% of the total loan value. This cost is offset by the time saved and the competitive mortgage options you will gain access to.
What Doesn’t a Broker Do?
Ontario commercial mortgage brokers are fully independent and licensed. Because they don’t work for lenders, they aren’t under pressure to sell you a package that doesn’t suit your needs.
A commercial mortgage broker will never:
- Recommend a package that isn’t in line with your business goals or requirements.
- Unfairly favour a lender over another based on commercial agreements.
- Tell you that your goals can’t be achieved. A broker can be looked at as a partner in an important transaction. Because their business is based on your satisfaction and a closed mortgage, you will always be the priority.
Get Support When Buying a Commercial Property
There are times when brokers aren’t necessary. If you are highly experienced in commercial real estate and retain your own legal and financial specialists, then you could navigate the mortgage market alone.
The reality is that small and medium-sized businesses don’t have these kinds of resources. Even larger businesses right up to enterprise-scale rely on brokers because the process is smoother and more cost-effective.
If you want the best rates, unbiased advice, and support throughout the mortgage application and signing process, Ontario commercial mortgage brokers Mortgage Capital Investment (MCI) will become invaluable assets.
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.