Why Use a Commercial Mortgage Broker in Winnipeg

June 5, 2018 | Posted by: Ron Chan

Why Use a Commercial Mortgage Broker Winnipeg

Commercial real estate is on the top of many minds here in Winnipeg. With the True North Square development underway and riding the success of the newly redeveloped RBC Convention Centre, excitement is high in the city. 

All sorts of enterprises are coming out of the woodwork in search of relocation or expansion, while others are seeking a “home” for their very first injection into the Winnipeg market. If you count yourself among those entering the local commercial market for the first time, there’s a good chance that you’re considering using a commercial mortgage broker to help you with the process. 

Well, there’s no need to build suspense - working with a commercial mortgage broker is the smart choice. Let’s find out why.

5 Reasons Why You Should Use a Commercial Mortgage Broker When Looking for a Brick & Mortar Space for Your Business in Winnipeg Manitoba

1. Commercial Property Diversity is Daunting

When buying a home, you’re either looking at a single detached house or a unit within a multi-residential property, and even with that fairly simple equation the reasons to use a mortgage broker are clear.

But when you are entering into a commercial mortgage, the options are far more numerous, and thus so are the potential complications. In Winnipeg, you have access to a very diverse range of commercial properties, including those located within mixed use high-rise residential, indoor and outdoor shopping centres, traditional office spaces, mixed use commercial-industrial parks, and land slated for development. While the options are bountiful, they can also be stressful for those taking on a commercial mortgage for the first time. But when you work with a broker who has vast experience in the commercial real estate market in Winnipeg, you gain a partner who will help you make a decision best suited to your business goals.

2. Finding a Suitable Lender for Your Business Size and Type

The nature of a commercial mortgage screams “risk!” to lenders, especially if you’re entering into the market for the first time. Because of this, it can be hard to find a lender than will be interested in providing you with the loan you need to get your brick, mortar, and business off the ground. Going at it alone is a fruitless endeavor.

However, when you work closely with a reputable commercial mortgage broker, you find someone who is interested in learning about your unique commercial mortgage financing needs. In doing so, they become invested in your business, and will and work strategically to identify suitable lenders while putting together a presentation that will attract their attention.

3. Providing Access to Non-Advertised Commercial Rates

Even if you have a knack for identifying commercial lenders who may be interested in hearing your case, you may not gain access to the best rates. Only a commercial broker who has spent years building relationships with commercial lenders can provide you with access to commercial rates that you would not be able to uncover elsewhere or on your own. But it doesn’t stop there. 

4. Minimizing Other Lender Costs and Fees

The commercial mortgage process is much more convoluted that residential, and there are often additional costs and fees associated with every step of the transaction. Once again, only an independent mortgage broker that boasts long standing relationships with lenders can help you navigate your way around these at-times inflated expenses. You may be thinking that banks could care less about these “longstanding relationships” and you’d be right. The reason why a reputable commercial broker is able to obtain preferred rates (for you) and mitigate the potential for additional costs, is because special rates and concessions are based on the volume of business that they bring to a lender, with the savings being passed along to you, the borrower. 

In the end, all you need to know, is that your transaction will come out looking much better when working with a commercial mortgage broker.

5. Provision of Other Resources and Support Services

Again, a commercial mortgage is much more complicated than what you are accustomed to in the residential sphere. The entire process involves many more people, organizations, and ultimately red tape. Yet again we see how commercial broker relationships come in handy. They can help you save money through existing relationships with complementary industry professionals. These can include accountants, appraisers, lawyers, and other commercial service providers. This direct channel to key players can effectively save you time, effort, and money, as together the group works cohesively to see your transaction through to successful fruition.

As a leading commercial mortgage broker in Winnipeg, I can help deliver all of the above. All you need to do, is take the first exciting step towards seeing your dreams of a commercial space become a reality. Contact me today

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