WHAT YOU SHOULD LOOK FOR IN A GOOD COMMERCIAL MORTGAGE LENDER

Mortgage agents and brokers in Canada have a vast opportunity in the area of commercial mortgage financing. Arranging commercial deals is highly profitable and it is a segment of the market that is much less competitive than residential mortgage financing. The reason it is less competitive is that many mortgage agents and brokers want to be able to offer commercial mortgage financing but don't know how. This is why having a strong partnership with a commercial mortgage lender is key.

Arranging commercial mortgages and seeing them through to funding will ultimately come down to the support offered by your commercial mortgage lender. Many major banks that offer commercial mortgage financing do not offer mortgage agents and brokers this support. Instead, they expect the mortgage agent or broker to know how to put together a commercial deal. This is a major reason why, despite interest, many mortgage agents and brokers shy away from commercial mortgages.

Like anything, getting up to speed on how to arrange a commercial mortgage will come down to practice, experience and, as I mentioned, a strong partnership with a commercial mortgage lender that will support you through the learning curve.

So what should you expect from a commercial mortgage lender?

Availability and Responsiveness - Your commercial mortgage lender should be available to take your calls and/or returns your calls within 24 hours. They should respond to your emails the same day and be available to discuss and offer a quote to you if you have provided them with the key information. If information is missing, they should help you to identify missing information so that your next quote runs even more smoothly.

Assistance and Education - Because most residential mortgage agents and brokers have little knowledge regarding commercial mortgage lending, they will often need help from start to finish. A good commercial lender, and particularly a good private commercial lender, will recognize this and provide required patience, direction and support.

A good commercial mortgage lender will provide you with a term sheet or conditional commitment within 24 - 48 hours of receipt of a proper package for underwriting and consideration of the transaction. They should also offer financing on a wide range of property types.

A big part of getting deals done is problem solving. Your commercial mortgage lender should be a deal maker and always be looking for ways to make your deal work. This may include, but not be limited to, the way the deal is structured, the interest rate, outside security, and alternative debt service or interest reserves.

If your commercial mortgage lender is a private lender, they should provide you with access to a decision maker or, if the commercial mortgage lender is an institutional lender, they should have a proven track record of getting results.

As we all know, the mortgage industry is very competitive and the more you diversify your ability to finance different types of mortgages, the more competitive you will be. Forging a strong partnership with a good commercial mortgage lender will help you achieve this goal.

If you are interested in learning more about commercial mortgage financing, or you are a commercial mortgage broker or agent already and would like more information about our programs, please contact Commercial Mortgage Team at First Equity at 416-440-1224 ext 22 or visit www.firstequity.ca