Commercial mortgage broker
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A "commercial mortgage broker" acts as an intermediary who brokers mortgage loans on behalf of businesses or individuals who needs a commercial loan. This a 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.
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 now-a-days, the role of the commercial mortgage broker has become more popular and a necessity. And because of this competitiveness, some lenders don't 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 making very easy and better choice for loans and about lenders.[5][6]
Fees of a commercial mortgage broker[]
There is no law or any official announced fees or commission for a commercial mortgage broker. But some brokers charge a fee to the lenders, and the others take commission, which they receive from the lenders whom they introduce to borrowers.[7][8]
By countries[]
Commercial mortgage broker in Canada[]
In Ontario, the commercial mortgage brokers are not required to carry a license. It helps reducing the red tape for commercial borrowers to work with commercial mortgage brokers. Because the commercial borrowers don't require a layer of regulatory protection because they are large enough to protect themselves.[9]
Commercial mortgage broker in the UK[]
In the United Kingdom, the commercial mortgage brokers are regulated by the National Association of Commercial Finance Brokers (NACFB).[3]
Commercial mortgage broker 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[]
- ^ "Commercial Real Estate Loan". Investopedia. 29 January 2021. Retrieved 6 October 2021.
- ^ a b "What Is a Commercial Mortgage Broker and Why Use One?". CloptonCapital. October 1, 2019. Retrieved October 7, 2021.
- ^ a b "Commercial Mortgage Brokers & Advisors". Online Mortgage Advisor. Retrieved 6 October 2021.
- ^ "Sizing up NYC's debt brokerage powerhouses". The Real Deal. Retrieved 6 October 2021.
- ^ "The Value of Mortgage Broking - Deloitte" (PDF). Deloitte. Retrieved 8 October 2021.
- ^ "Mortgage brokers increase customer competition and choice". Smartline. Retrieved 8 October 2021.
- ^ Blackburne, George (11 April 2013). "Reasonable Loan Fees in Commercial Mortgage Brokerage". info.c-loans.com. Retrieved 8 October 2021.
- ^ 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.
- ^ "Ontario to give license on commercial mortgages". REMI Network. Retrieved 12 October 2021.
- Brokerage firms
- Mortgage