I was sitting with an RBC mortgage specialist today who is also a good friend of mine. We were discussing the woes of life and catching up on industry news and market changes. He mentioned to me that he didn’t realize that commercial mortgages required so much time to not only get approved but to get funded. He specializes in residential mortgages and passes commercial mortgages along to a colleague who specializes in commercial mortgages. In the last referral he made it took a few months just to get the paperwork together.
That’s the standard for borrowers seeking a commercial mortgage. There can be a lot of time spent assembling documents, going through the math, figuring out the right way to present a deal and then waiting on a bank or lender to make a decision about whether or not they will fund the deal.
The more you pay for the money the faster the process can go and the less burdensome the due diligence can be. Some borrowers get frustrated by this because they think their bank should be able to move quickly and respond immediately to their request. Banks have process and banks have bureaucracy. The one thing I know about helping people with commercial mortgages is to give ourselves time to get the deal done.
If you haven’t done so already you should visit of our online tool www.mlenow.ca which can help you prepare for your commercial mortgage including giving you a list of documents you will need, questions you will be asked and numbers you will have to figure out. Give it a try today.
“If time be of all things the most precious, wasting time must be the greatest prodigality.” – Benjamin Franklin
Click here to get prepared for your next commercial mortgage.