How We Work

Our Step by Step Process

The best way to begin the process is to contact us by telephone, by contact form or by e-mail. An experienced commercial mortgage broker will discuss your project and your specific financing requirements.

The borrower client, should as soon as possible, provide the broker with pertinent documentation relating to the project.

In order to get a more thorough understanding of the project, a meeting and/or a site visit will be arranged at which time additional information or documentation may be required to analyze and assess the financing needs of the borrower.

1. Engagement or Mandate

When you engage our services, an agreement or mandate is signed by both parties. This document outlines the specific financing requirements on which the broker will focus his energies and efforts.

2. Fees

For all commercial transactions, our fees are based on a percentage of the loan amount accepted by the borrower. Payment of our fees is the responsibility of the borrower client, as lenders typically do not pay fees to mortgage brokers for commercial mortgages. An Irrevocable Letter of Direction (ILD) with respect of the payment of fees is signed by the borrower and sent to the lawyers handling the matter. The ILD becomes effective only when the borrower has duly accepted a lender’s loan commitment.

Generally, a small non-refundable retainer is required by CMI at the outset in order to 1) confirm the borrower client’s commitment to the project, and 2) to compensate the broker’s professional time in completing a detailed analysis and assessment of the project and to prepare and present a professional financing request to various lenders. In addition, the broker routinely provides advice to the borrower client throughout the financing process. Please note that upon closing, any retainer paid by the borrower client is deducted from the above broker fees noted above.

3. Letter of Interest

Lenders sometimes issue a Letter of Interest (LOI), which outlines the general terms and conditions of the proposed financing for which the lender will seek approval. It should be noted that the LOI is not a formal loan commitment, thus allowing for further negotiations and changes. The advantage of the LOI is that the lender can respond quickly and then complete the due diligence process prior to issuing the formal commitment letter.

On occasion, the lender may ask for a deposit upon acceptance of a suitable LOI.

4. Approval – Loan Commitment or Offer of Financing

Once the lender’s offer of financing has been accepted, the lawyers will be instructed by the lender to obtain and register the agreed upon security and the borrower will satisfy any conditions precedent prior to funding.

5. Funding

The funding of the loan occurs on a stipulated closing date according to the transaction in question.