Commercial Mortgage Brokers
“Residential Versus Commercial Mortgage Brokers’
From a licensing point of view, there is no difference between commercial mortgage brokers and residential mortgage brokers.
The real difference come from the business focus of the individual broker. And while I openly promote everyone to take advantage of the services mortgage brokers offer in general, commercial mortgage financing is much more complex than residential and for the best possible service, you should seek out brokers with significant commercial property financing experience.
Even among commercial mortgage brokers, there can be greater degrees of specialization depending on the type of project or property you’re trying to finance.
While the residential category effectively covers off all single unit residential homes and multi unit complexes less than 5 units, the commercial category covers off everything else.
A short list of commercial property types include Multi Family Units,
Apartment Buildings, Strip Malls, Mixed Use, Condo Development, Construction, Warehouse, Townhouse Development, Subdivision Development, Self Storage, Income Property, Office Building, Land Acquisition, and Land Servicing to name the main categories.
Each category can have its on specific lenders and its own unique financing requirements. So even though a broker may be a commercial mortgage broker by their own description, they may also not have any experience with one or more of these categories.
In selecting a commercial broker to work with keep in mind that the more relevant their experience is to the property type you’re working with, the more value they’re likely going to provide.
The commercial financing process can be quite grueling in comparison to what you may expect from a residential application submission.
Commercial lenders will perform much greater due diligence on the property and the owners that you would expect when financing a home.
Not only can the process be more difficult to navigate, but finding relevant lenders that fit your situation at a given point of time can also be challenging.
Which is exactly why you should consider working with a commercial mortgage broker, and preferably one that has relevant experience working with your type of property requirements.
If you’re not sure about the qualifications of certain individuals, ask for references from past clients, and give these individuals a call to see what they have to say about the level of service they received and their over all level of satisfaction.
Personally, I would recommend that you give me a call so that I can provide you with a free assessment of your options. If I can’t help you, I’ll do my best to refer you to one or more commercial mortgage brokers that are more specialized in your area of need.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel