Mortgage Brokers

[Canadian2020]

Hi All,

I am a regular reader of this forum for the past couple of years and about to buy my first Multi-unit property ( 8 units). I have a mortgage broker and he mentioned that he charges a fee. The Brokers I used to find me the mortgage for my own house and my investment condos didn`t charge me any fee.... Are commercial brokers different?

Regards,

Canadian2020

 

[Noel]

Yes, there are fees when completing a commercial transaction.
It`s part of doing business in the commercial real estate world.





QUOTE (Canadian2020 @ Feb 22 2010, 06:10 PM) Hi All,

I am a regular reader of this forum for the past couple of years and about to buy my first Multi-unit property ( 8 units). I have a mortgage broker and he mentioned that he charges a fee. The Brokers I used to find me the mortgage for my own house and my investment condos didn`t charge me any fee.... Are commercial brokers different?

Regards,

Canadian2020

 

[Canadian2020]

Thanks for the quick reply

 

[Thomas Beyer]

QUOTE (Canadian2020 @ Feb 22 2010, 06:10 PM) ..Are commercial brokers different?
yes.

Expect to pay 1.5% - 2% (or more !!) for mortgages under $500,000 .. around 1% for $500,000 to $1M .. maybe 0.6 to 0.9% for $1M to $2M and 0.6% or slightly less for mortgages over $2M .. less for repeat clients and more for "newbies" as they take twice to three times as long for usually smaller mortgages !

Example in your case: 8 plex @ 80K / door for 640K and maybe a 450K mortgage: budget 3% and you`ll be safe !

Try George Hilton in Edmonton or any broker near your city if "out east" at Montrose Mortgage !

 

[Nir]

QUOTE (ThomasBeyer @ Feb 22 2010, 05:36 PM) budget 3% and you`ll be safe !
3% is ridiculous and way over paying! should be closer to 1% than 3%.

 

[housingrental]

I agree with Neil
Thomas is usually bang on but a bit on the high end in this thread

QUOTE (investmart @ Feb 23 2010, 08:34 AM) 3% is ridiculous and way over paying! should be closer to 1% than 3%.

 

[Thomas Beyer]

QUOTE (investmart @ Feb 23 2010, 07:34 AM) 3% is ridiculous and way over paying! should be closer to 1% than 3%.
on a 400K 8-plex loan ??

lower % for a higher loan amount over 500K, $1M, $2M, $5M ..

.. hard to find a broker working for 5K !!

 

[housingrental]

Maybe this is varies by province or area?
The last few deals I`ve seen at around this amount have been for 1%


QUOTE (ThomasBeyer @ Feb 23 2010, 03:12 PM) on a 400K 8-plex loan ??

lower % for a higher loan amount over 500K, $1M, $2M, $5M ..

.. hard to find a broker working for 5K !!