Benefits of Contacting Commercial Mortgage Broker in Toronto
Most of the time, the borrowers direct themselves towards any of the local banks when they are interested in financing any of their mortgage transaction of commercial nature. This might be good in some cases, but most of the time giving preference to commercial mortgage broker in Toronto is something more beneficial for the applicants.
Let’s see what does any commercial mortgage broker in Toronto has tooffer.
- Highly competitive rates:
When you apply for loan or mortgage to any local bank, then the bank determines and sets the mortgage and interest rate bases on their internal costing. They will think their benefit first. In case a bank is giving high rates to its depositors then it is definitely going to charge interest rates higher than the amount it is paying to its depositors. This will be done in order toimprove their business’s profitability.
So it is better to go with the option of commercial mortgages. The interest rates you can get from this source are much lower than those which local banks are offering. If you want to know about such sources then you will come to know about security markets of commercial mortgage-backed nature, some reliable insurance companies and hedge funds.
- Terms and conditions:
When you ask for loan from a local bank, then you are only given the option of getting loan at fixed rate for just five years and not more than that, but commercial lenders are offering the applicants with loans with fixed rate for many years. You can get the loan for 10-30 years. This time period can fluctuate between this given range depending upon the nature and type of commercial property involved.
- Personal guarantee:
When a loan is sanctioned by a local bank, then the bank will ask the applicant to sign for the commercial mortgage personally. On contrary, if you will contact commercial brokers, then you can get exemption from this obligation.
- Geographical diversity provided:
When a bank sanctions loan, then it first prefers to give loan to the applicants which are living or working in its immediate geographic area. And this is something that puts restrictions on the borrowers of commercial mortgage. But if you prefer commercial mortgage broker in Toronto, then he is going to have good contact and relationship with reliable lenders working across the city. In this situation lenders are always willing and interested to sanction mortgage loans to the commercial borrowers working across the country for the sake of making their portfolio more diversified and attractive.
It is because of this tough competition, due to which the applicants can enjoy many benefits in the form of low interest rates on commercial mortgages.
- Low transaction fee:
When you will involve a commercial broker in the deal then you will get many benefits and low transaction fee is one of them. The broker will take the responsibility of getting quotes from more than one lenders and will work hard to negotiate on minimum transaction fee.