CMSI Alberta is located in Edmonton, Alberta – working nationally in cooperation with our other two CMSI offices located in Vancouver and Toronto to facilitate financing Canada-wide.
CMSI’s commercial real estate mortgage broker’s are experienced and knowledgable, working with borrower’s and lender’s to find the best fitting commercial mortgage for all parties involved.
A commercial real estate mortgage broker works with a borrower to help organize and structure the paperwork and funding requirements for various forms of real estate financing.
A commercial mortgage broker then takes this information on the borrower’s behalf to numerous commercial lenders and investment groups looking for an interested commercial lender that is providing the best interest rate and repayment terms.
Commercial mortgage brokers facilitate the communication between commercial borrower and commercial lender to help expedite the financing and ensure all parties are working together in good faith.
The commercial mortgage funds are lent in the name of the commercial mortgage lender, and the commercial mortgage broker collects an origination fee (typically 1%) once the loan is funded.
Commercial lenders will qualify applicants based on a combination of the following:
The Debt Service Coverage Ratio (DSCR) or cash flow. *Usually lenders look for a DSCR of 1.25% compared to costs (mortgage payment, taxes, condo fees, utilities, etc.)
Environmental reports on the property
Appraisals are required for commercial mortgages
For commercial real estate mortgages, it’s a company that purchases the property. In most cases the shareholders of the company purchasing the property will need to provide a personal guarantee.