QUOTE (DanieLL @ Jan 14 2010, 07:22 AM) Does your commercial mortgage broker change you fee?
I understand that that for super large deals it may be appropriate to charge “finders fee”
However, have you heard of charges on CMHC mortgages (8-12plex)?
Could somebody share his/her experience with this?
Thanks
0.3% to 2% is common .. the smaller the mortgage the higher the %.
Mortgage brokers provide a very useful service and thus, someone has to pay for this service. In residential transactions this is usually the bank (i.e. you indirectly through the mortgage interest rate over time) and in commercial transactions it is you directly, upfront. In the US you also pay "points" as a residential borrower, unlike in Canada.
They
a) guide you in your mortgage application
b) shop around your desired mortgage to dozens of lenders to find a "best fit"
Common / "rule of thumb" is:
2% to 5% even for high risk loans or loans below $500,000 .. the "stranger" the situation or the borrower the higher the fee
1% for 500K to $1M
0.5% to 0.8% for $1M to $2M
0.3% to 0.6% for over $2M
fees are negotiable .. and are lower for repeat clients
CMHC is even more work for a broker .. so why not charge a fee ?
