Commercial mortgage broker

A commercial mortgage broker acts as an intermediary who brokers mortgage loans on behalf of businesses or individuals who needs a commercial loan. The loan is provided by the commercial lender securing a commercial property of the borrower.[1] In developed mortgage markets today like the United States, Canada, the United Kingdom, Australia, and United Arab Emirates, mortgage brokers are the largest sellers of mortgage products for lenders.

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Some commercial mortgage brokers offer loans but most of them do not provide commercial mortgage loans. A commercial mortgage broker is often used to connect the borrower with potential lenders, obtain multiple quotes, and to manage the financing process.[2]

Market competitiveness

As markets for commercial mortgages have become more competitive, the role of the commercial mortgage broker has become more popular and a necessity. Because of this competitiveness, some lenders do not even consider applications made directly by borrowers; instead, they prefer applications made by brokers, as they know the whole process and market values and rates very well.[3][4][2] A mortgage broker also helps customers make better choices about loans and lenders.[5][6][7]

Fees

There is no law or any official announced fees or commission for a commercial mortgage broker. Some brokers charge a fee to the lenders, and others take commission, which they receive from the lenders whom they introduce to borrowers.[8][9]

By country

In Canada

In Ontario, commercial mortgage brokers are not required to carry a license. This helps reduce the red tape for commercial borrowers to work with commercial mortgage brokers. The commercial borrowers do not require a layer of regulatory protection because they are large enough to protect themselves.[10]

In the UK

In the United Kingdom, commercial mortgage brokers are regulated by the National Association of Commercial Finance Brokers (NACFB).[3]

In the US

In the United States, commercial brokers are represented by a certificate of National Association of Mortgage Brokers (NAMB): Certified Mortgage Consultant (CMC).

See also

References
  1. "Commercial Real Estate Loan". Investopedia. 29 January 2021. Retrieved 6 October 2021.
  2. "What Is a Commercial Mortgage Broker and Why Use One?". CloptonCapital. October 1, 2019. Retrieved October 7, 2021.
  3. "Commercial Mortgage Brokers & Advisors". Online Mortgage Advisor. Retrieved 6 October 2021.
  4. "Sizing up NYC's debt brokerage powerhouses". The Real Deal. Retrieved 6 October 2021.
  5. "The Value of Mortgage Broking - Deloitte" (PDF). Deloitte. Retrieved 8 October 2021.
  6. "Mortgage brokers increase customer competition and choice". Smartline. Retrieved 8 October 2021.
  7. "Mortgage Broker Guide". Tuesday, 10 January 2023
  8. Blackburne, George (11 April 2013). "Reasonable Loan Fees in Commercial Mortgage Brokerage". info.c-loans.com. Retrieved 8 October 2021.
  9. Krischer Goodman, Cindy (8 February 2018). "Here's how much a commercial mortgage broker can make in South Florida". The Real Deal. Retrieved 8 October 2021.
  10. "Ontario to give license on commercial mortgages". REMI Network. Retrieved 12 October 2021.
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