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Advantages of Using a Commercial Mortgage Broker

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Marcus | 23 Mar 2017, 03:46 PM Agree 0
Hi Everyone,

Here is a great article on the advantages of using a commercial mortgage broker for your personal projects:

If you have ever thought about financing a commercial real estate property, or construction project, the thought of using a commercial mortgage broker may have crossed your mind. However, some have debated using a commercial mortgage broker based on the belief that it is more expensive to use a broker rather than go directly to a lender. This common belief is not an accurate assessment and we will list various reasons to why that is.

Locating a Lender:
Locating a lender to fund your commercial mortgage is not as easy task. Due to the wide range of property types, mortgage types and special circumstances, a single lender relationship simply cannot offer valuable mortgage programs for all potential mortgages. A good mortgage broker will have dozens of working relationships with active lenders who will accommodate your specific borrowing needs. You may waste a considerable amount of time simply trying to find a lender that offers the mortgage program or parameters you need. At the end of the day, real time feedback could save you thousands of dollars by leveraging your brokers experience and networking abilities.

Loan Structuring:
Commercial mortgage brokers understand the complication and intricacies of drafting mortgage documents. Each transaction can be unique in its own way, having an experienced broker to help navigate you through the drafting of the mortgage structure can be critical. Brokers assist in adding flexibility to make the lives of borrowers easier pre and post closing. This is yet another way brokers add value to transactions when engaged and use their expertise to provide a seamless closing process.

Lower Interest Rates:
One of the most significant ways in saving money by using the services of a commercial mortgage broker rests in their ability to deliver lower interest rates. Active commercial mortgage brokers are often times provided special interest-rate options based on the volume of business they bring to a lender. This rate savings is passed along to the borrower. All in all, these savings could turn out to be largely significant over the term of a mortgage.

Commercial Mortgage Broker Commissions:
It is true that in the end, you do pay a fee for utilizing the services of a commercial mortgage broker. However, you will find, as many commercial investors have in the past, that working with a broker will help ensure that your needs are met and that you get the best deal in the process. Whether you are in a market for a commercial construction mortgage, permanent, mezzanine or private mortgage, a good broker will be able to provide guidance in selecting the best lending source. If timing is an issue, the broker will be able to leverage their long term relationships with a lender to garner an expedited processing of your request. A commercial mortgage broker is your advocate in navigating the commercial lending marketplace to deliver results and savings.

For any questions or inquiries please contact:
Devonshire Financial Inc.
484 Waterloo St. London, ON
P: (519) 872-5027
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