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 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]

Fees

Some brokers charge a fee to the lenders, and others take commission, which they receive from the lenders whom they introduce to borrowers.[3][4]

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 perceived to be large enough to protect themselves.[5]

In the UK

In the United Kingdom, commercial mortgage brokers are regulated by the National Association of Commercial Finance Brokers (NACFB).[6]

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).[7]

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. Blackburne, George (11 April 2013). "Reasonable Loan Fees in Commercial Mortgage Brokerage". info.c-loans.com. Retrieved 8 October 2021.
  4. 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.
  5. "Ontario to give license on commercial mortgages". REMI Network. Retrieved 12 October 2021.
  6. "Commercial Mortgage Brokers & Advisors". Online Mortgage Advisor. Retrieved 6 October 2021.
  7. "Sizing up NYC's debt brokerage powerhouses". The Real Deal. Retrieved 6 October 2021.
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