Who is your champion? Don’t have one? Get one.

You may not know this or even have considered you would need this – but we all do.  We all need a champion for our cause.  Without a champion is can be hard to get to where we need to be or to get what we are looking for.  In my experience over the past 18 years working to get money for people and businesses I can attest to the importance of having someone support your cause and help you fight the good fight. Continue reading “Who is your champion? Don’t have one? Get one.”

2 clients that hated our service

It’s not every day that a company will share the complaints it receives from its customers but I thought it would be a great opportunity to address some of the things we deal with that people may not know or care to know.  Over the past 12 years I can assure you that not every client we have done some work for has been our biggest fan.  Sometimes we have made mistakes, other times we have addressed situations that in hindsight should have been handled differently.  We are people who are subject to shortcomings and failings like anyone else but we always look to make the best decisions we can to help our clients do more. Continue reading “2 clients that hated our service”

You get what you pay for

“Good work ain’t cheap and cheap work ain’t good”

Isn’t the only saying true – you get what you pay for.  This is especially true when using a broker.  Most brokers that help you find financing earn a commission for successfully finding you the money you need.  Because you don’t pay them like you would any other professional you may be less impressed with the level of service delivered.  The reason is simple – if you are not paying someone to look after your interests chances are very good that they are taking care of their own interests at your expense.   Continue reading “You get what you pay for”

Good deals get good money

In talking with a potential client yesterday I heard the comment “What comes first – the plan or the money?”  The answer is – the plan.  It always starts with a plan.  Just because you have an asset that has a lot of equity in it does not always translate into a cheque being written by a bank or lender.  In fact, most banks and lenders that do write cheques on the strength of available equity and no plan tend to charge accordingly with higher rates of interest and fees. Continue reading “Good deals get good money”

Where do I start?

It is not unusual for someone to contact us with the question: “Where do I start?” or “I need to know a few things about commercial mortgages”. Commercial mortgages come in all different shapes and sizes and unlike residential mortgages, each transaction is approved on its own merits and the interest rate and fee for the approval will be different for each mortgage as well. This can be frustrating for commercial mortgage clients. Some of the questions we get include:

– how much down payment do I need?
– what documents will I need to give to the bank?
– how much income do I need to prove?
– can I get a pre-approval?
– I want to buy a property but don’t know when to make the offer?
– what will the interest rate be?
– can fees be included in the mortgage?
– how long will it take?

To answer the questions above, someone has to look at what you have and provide you with direction so you know how to move forward. We have different services that assist clients with these challenges. We have a Bridge Capital MAP that will provide you with the basic outline of a commercial mortgage and what is required. If you have a deal you want to have someone review for you our Options Package might be your best option. For those borrowers that really don’t want to pay a broker a commission but need help presenting their deal to a bank or lender we have a Discussion Document service that will structure your transaction and put it in a format that will allow banks and lenders to understand what you are looking for.

Brokers are important but sometimes you don’t need a broker – you need information. Please visit www.bridgecap.cato learn more about how we can help.

Commercial borrowers frustrated by process

Two calls in a row this week have come in from borrowers that feel very frustrated with the lack of service being given to them from other lenders and other brokers. It would appear that the amount of financing they are seeking is too small for a corporate banker to review and too large or complicated for a bank branch to review. One client advised that they had a residential mortgage broker looking to get them financing and they had been waiting 4 months for an answer.

As a borrower it is important to understand what it is you are looking for. The easiest place to start is to determine what the loan to value of your request is. For example, if you are purchasing a property for $150,000 you should have at least $52,500 available for a down payment (or 35%). Banks and lenders may not actually require that much as a down payment however when talking to a bank or broker you should let them know how much you have and how much you are looking for. Then proceed to ask them about the last few deals they did and how much down payment or equity the borrower had to have. If you are simply looking for answers or direction be very specific about what you need.

Banks and brokers will tend to look at a deal and keep asking for paperwork until they know they have a deal. This happens because financing requests can be structured in a variety of ways to get the borrower what they need. Unfortunately banks and brokers don’t always get the right information upfront and it can be very frustrating as a borrower to wait while they figure it out. Don’t despair – just put time frames around your request so that you can move on to the next person if your needs are not met.

If you have a transaction you would like some direction on, please do not hesitate to email dylan@bridgecap.ca or visit www.bridgecap.ca/dylan

5 questions every bank asks

Whether you are looking to borrow money for a residential mortgage, a commercial mortgage or business loan you should be aware of the 5 most important points a bank or lender will look for in determining your approval.

1. Character – Do you make your payments on time?
2. Capacity – Do you have money to make the payments?
3. Capital – Do you have financial stability and net worth?
4. Collateral – Do you have an asset that can be used to as security for the loan?
5. Conditions – Other items related to your request like location, property type, etc.

Your answers affect your interest rate, the amount a bank will lend you and how much (if any) they will charge you as a fee. A mortgage broker can help you put together your 5 answers and can also explain them to a bank on your behalf. If you want to know how you strong your 5 answers are, please email us at dylan@bridgecap.ca or visit www.bridgecap.ca/dylan