What are the Advantages of Using a Commercial Mortgage Broker

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Commercial Mortgage Broker

If you are planning to make a high-end investment like buying a commercial property, you need a commercial mortgage broker. Purchasing a business property or investing in a commercial real estate requires a lot of planning and financing. Aside from that, the process of getting a commercial mortgage loan is not as straightforward and easy as that of getting a residential mortgage loan.

For this reason, it is advisable to hire professional help from a mortgage broker who is more familiar with the lending policy. In fact, a recent survey shows that 70% of borrowers prefer to use the services of a mortgage broker.

Here are some advantages that can be accrued from using a commercial mortgage broker.

  1. Experience

With the vas experience, mortgage brokers can save you a lot of legwork. This is because they have regular contact with most commercial mortgage lenders, resulting in a quick and smooth application process.

Otherwise, if you are inexperienced and have never dealt with a lender before, there is a high chance for the processing and closing times to be delayed. You are likely to lose out if you approach the bank directly since they will use your situation to overcharge you.

With a mortgage broker on your side, you won’t have to stress yourself with the application and the lender won’t take advantage of you. They will put their experience forward in order to negotiate the best deals and ensure a successful transaction.

  1. Competitive Rates

The good thing about commercial mortgages is that they don’t have fixed interest rates like standard residential mortgages. What most borrowers don’t know is that the interest rate is set based on an individual basis and the alleged risk of the loan.

For this reason, you need a competent mortgage broker with extensive credit skills to negotiate the best rates for you. The best mortgage brokers have a great relationship and access to a plethora of lenders. When you have a wide range of lenders to choose from, your chances of getting approved for a reasonable loan will be high.

Also, rather than just accepting one quote from a lender, a mortgage broker will help you apply for different mortgage quotes. They can do this without affecting your credit so you can choose the mortgage with the best rates. Doing rate shopping can help you save a lot of interest throughout the life of the mortgage. 

  1. They can Manage Fees Better

When taking on a new mortgage, it is worth noting that there are different types of fees involved. This can include application fees, origination fees, and appraisal fees. The advantage of having a mortgage broker is that they are able to get the lenders to waive some or even all of the fees. This will undoubtedly save you a few dollars.

  1. Better Access than Bank Loan Officers

Unlike bank loan officers, mortgage brokers tend to be more accessible to buyers. This is probably because mortgage brokers don’t get paid until they help you close your mortgage. They can easily commit to you and become an integral part of your life.

Furthermore, once you have accepted the deal, the broker can work with your solicitor, accountant, and commercial buyer’s agent to ensure a smooth process. For instance, they can team with an accountant to audits your accounts to determine if your business can make the mortgage repayments.

  1. Helps you Save Time

When you approach your mortgage lender for a mortgage, you can be called in for more than one meeting. The whole process of applying for a mortgage is highly regulated and you could easily be denied a mortgage if you fail any of the tests.

When you use a commercial mortgage broker, it will be easier to schedule a meeting with the mortgage advisor at the bank. They can also use their expertise to arrange for follow up meetings to determine if you qualify for the loan. This will save you a lot of time and effort. Better yet, you will be able to focus on potential investment opportunities as well as your other businesses.

  1. Navigate New Regulations

Recently, there have been major changes in the buy-to-let property sector. For instance, there have been revisions made to the mortgage tax relief system. Another change is the increase in stamp duty. All these have contributed to making the buy-to-let commercial mortgage application stricter. Therefore, in order to understand the new regulations, you need the help of a mortgage broker.

  1. Geographical Diversity

Most local banks only tend to give mortgages to borrowers in their lending area. As a borrower, this can greatly limit your choice for a mortgage and this can lower your chances of getting great deals. But when you have a commercial mortgage broker, you will be able to access potential lenders throughout the country who don’t have limits to their lending area.

Using their experience and connections, brokers will scout for lenders who are willing to diversify their portfolios by extending their mortgages to different locations. With such competition from the lenders, you will be able to get loans with lower rates.

  1. Personal Guarantees

More likely than not, it is a requirement of most banks for the mortgage borrowers to sign personally for their loans. If you prefer not to sign personally for your mortgage request, it is highly advisable to work with a commercial mortgage broker. This is because most brokers have admittance to non-recourse commercial mortgage loans.

  1. Extended Terms

Basically, almost every bank offers a fixed rate loan term of about 5 years. This is because doing this will only tie up their capital with fixed rates that are long-term. Luckily, commercial mortgage brokers can make fixed rate loans ranging from 10, 15, 20 and 30 years. The fixed-rate term will, however, depend on the nature of the property.


Once you have built your property portfolio, a commercial mortgage broker will help you get the financing that you need to successfully develop your property. However, you need to research your options and opt for a reliable broker that has good credit skills and access to a variety of mortgage providers.

Make sure that they are credible, experienced and accredited to write loans with various lenders. Through that way, you will experience less stress as you entrust the successful commercial mortgage transaction to your broker.

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