Thinking about investing in commercial property?
Chances are, if you have thought about purchasing or refinancing commercial property you may have decided against using a commercial finance broker believing you will save money by going straight to the lender. While it seems like a reasonable belief, this is actually a myth.
The truth is, if you take the time to break down the value of using in a commercial finance broker, you will discover although there may be initial expenses, engaging in the service translates to money well spent.
Here is a quick break down, and only a few of the ways you profit from using a commercial broker, such as TMFG.
Finding the loan that fits.
Due to the wide range of property types, loan types and special circumstances, locating a lender for your commercial loan may not be as easy as you think. A single lender does not always offer products for all potential loan types. For this reason your loan application may not be approved, forcing you to go through the application with another lender – possibly repeating this lengthy process several times before you find a product and lender supportive of your application. This translates to valuable time wasted. A broker is able to discuss your loan application to multiple lenders, improving your chances and providing indicative terms, conditions & pricing to help you obtain the best deal.
Uncovering competitive rates.
An experienced broker can pass on significant savings by identifying variations between lenders. Having strong relationships with multiple lenders also gives a mortgage broker access to interest rates that individual loan applicants aren’t privy to. Although the cost difference between varying fees and rates may initially seem small, when discussing loans of multiple millions, over a period of time these rates and fees add up to considerable savings.
Access to service networks.
A good mortgage broker will have a solid network of professional services; accountants, solicitors, valuers and other service providers that you would otherwise spend time sourcing. These networks, teamed with the broker’s personal staff – who you will also have behind you – can help see the loan right through to settlement and beyond. These are ongoing relationships that would otherwise take years to establish, and these networking benefits far outweigh any cost you think you will be saving as an independent borrower.
As you can see, it is true, a commercial finance broker has a fee for their services, but when you add up all the benefits that come under this fee, you in fact save a lot more then you spend. The network of service providers, the relationships with lenders and the ability to “escalate” loan applications if you have a time issue, are all opportunities for savings independent borrowers would not have otherwise.
The small saving from a broker’s fees seems insignificant in comparison to all the savings you are making – not to mention the multiple headaches you will be saving yourself simply from the process of it all! You wouldn’t go to court without a lawyer, why enter the lending market without a broker? A commercial mortgage broker is the most valuable navigation tool in the challenging lending marketplace.
Speak to TMFG today about navigating you through your next financial venture. We can save you more than just time, starting now.