You may be relatively new to investing in commercial real estate, but making the purchase is likely to be a long-term financial commitment that can significantly impact your day-to-day finances. Choosing the wrong loan or lender can result in unnecessary repayment costs or even mortgage stress. This is where a mortgage broker steps in. A commercial loan broker can assist you in making the best decision by explaining all the options like government schemes, grants and mortgage insurance discounts available to you.

According to Deloitte’s report on Australian Mortgage in 2020, mortgage brokers bag more than half of all loans in Australia, making it a multi-billion dollar industry. It also suggests that mortgage brokers are most influential for millennials, a demographic likely to take out their first loan.

So, what do brokers do that isn’t possible if we do our homework and online research? We have gathered all the information you will need to make an informed decision if you want to consider hiring a commercial loan broker. 

• What Do Mortgage Brokers Do?

A mortgage broker arranges a loan for a property buyer by acting as a liaison between them and the lender. Mortgage brokers are legally mandated to work in the best interests of the property buyer when suggesting a loan. A commercial loan broker is a professional specialising in helping businesses secure commercial finance in Melbourne from lenders. Working with a loan broker can benefit individuals and companies of all types. 

It is also their responsibility to explain the various buying terms and help you understand the situation. They will also specify the types of loans and their associated terms available for your specific circumstances.

What Are The Benefits Of Hiring A Loan Broker?

The value of the commercial lending loan book written through mortgage brokers has more than doubled to reach $66.71bn in the October 2021 – March 2022 period, said Mortgage & Finance Association in their half-yearly report. Their popularity is due to the fact that they can access a wide range of lenders and products. Many businesses are unaware of the various types of commercial loans available, and a broker can help provide them with more options for picking the best loan for their needs. 

A primary benefit of using a broker is that they must act in the borrower’s best interests, whereas a bank or other financial institutions will not. If a broker is audited and found to have violated their duties, they will be fined or even have their operating licence revoked. 

Another advantage of working with a commercial mortgage broker is that they can advise and guide you throughout the loan application process and help you complete all required paperwork. Loan brokers are experts in their field and can provide you with invaluable insights into the world of commercial finance – they can advise you on the best types of loans.

A mortgage broker also provides a far more personalised service and is usually available as per your schedule to discuss work. 

When Should You Hire A Loan Broker?

Ideally, you should hire a mortgage broker six to eight months before you plan to put down the money for investment. A commercial loan broker will point you in the right direction by explaining what the lenders will look for when reviewing your loan application. Most financial institutions review three months of bank statements and check for discrepancies. If any are found, it will automatically raise a red flag, which could result in a higher interest rate on the loan or the loan being rejected altogether. 

In Conclusion

If you are thinking obtaining assistance from an Australian commercial broker, you should consider working with an awarded commercial mortgage company. They will assist you in obtaining the best loan possible and can provide invaluable advice and guidance throughout the loan application process. This can help ensure you get the capital you need to secure your company’s future.