Commercial Mortgage Brokers: directory of firms

It is a common assumption that commercial deals sit outside the mortgage brokering rules. They generally do not, because the licensing statutes are written around dealing in mortgages rather than around who the borrower happens to be. In Alberta, RECA's position is that anyone who deals in mortgages on behalf of another person for compensation, or represents themselves as a mortgage broker, must hold a mortgage broker licence issued by RECA unless an exemption applies under the legislation. British Columbia's Mortgage Brokers Act prohibits carrying on business as a mortgage broker or submortgage broker without registration. Ontario requires licensing with FSRA for regulated mortgage brokering activities unless the Act exempts them.

Exemptions do exist and they matter here more than on residential files, because commercial transactions frequently involve banks, credit unions and lawyers acting in their professional capacity, all of which are treated differently from an intermediary arranging the loan for a fee. Some provinces also draw distinctions around dealings with certain classes of sophisticated or institutional investors. Those carve-outs are specific, they are not uniform across the country, and they are not something to assume from a conversation.

The practical step is the same as on any mortgage: find out which entity is arranging the loan, ask what licence or registration it holds, and confirm it on the register kept by the regulator for the province where the property is located. RECA ProCheck, BCFSA's registrant records, FSRA's searchable listing and the AMF's Register of firms and individuals authorized to practise each let you do that without asking anyone's permission.

Multi-unit residential is the exception to the general rule that commercial financing is a purely private negotiation. CMHC describes itself as the only provider of mortgage loan insurance for multi-unit residential properties in Canada, covering categories including standard rental housing, retirement housing for seniors, supportive housing, purpose-built student housing, single room occupancy buildings and modular rental housing. Because the insurance reduces the lender's exposure, insured financing generally comes with terms an uninsured commercial loan would not offer.

MLI Select is CMHC's product for borrowers willing to commit to social outcomes, allowing access to reduced premiums and longer amortization periods based on the level of commitment to affordability, accessibility and climate compatibility. The commitments are contractual and they run with the financing, so they are a decision about how the building will be operated for years, not a box to tick at closing. If your project is multi-unit residential, ask a prospective broker directly how many insured files it has actually placed, because the application process differs substantially from conventional commercial lending.

The shape of the loan is different in ways that surprise borrowers coming from home ownership. Amortization and term are usually further apart, leaving a balance outstanding at maturity that has to be refinanced rather than simply paid off. Covenants are live obligations throughout the term, commonly including debt service coverage and loan-to-value tests, with reporting requirements attached. Recourse is negotiated rather than assumed, and where a loan is non-recourse the carve-outs deserve careful reading.

Timelines and costs also run differently. Third-party reports are commissioned during the process and are normally at the borrower's expense whether or not the deal completes. Prepayment is frequently restricted or expensive, since the lender priced the facility expecting to hold it. Refinancing risk at maturity is the exposure most often underestimated: a building that comfortably serviced its debt when the loan was written can face a very different market when the term ends, which is why experienced borrowers start refinancing conversations well before the maturity date.

Compensation on commercial files is arranged deal by deal rather than following a standard pattern, and it is entirely reasonable to ask how a broker will be paid before instructing anyone. What matters is that the arrangement is recorded in writing at the outset: who pays, on what event, whether any part is payable if the transaction does not complete, and whether the broker will also receive anything from the lender. Ask separately about third-party costs, since appraisals, environmental work and legal fees are usually the borrower's responsibility regardless of outcome.

On LokalMatch, commercial mortgage brokerages appear in a plain directory organised by area, and you approach whoever you choose directly. This is a restricted category on the site: we don't sell requests for this service, nobody buys placement, and we do not vet, rank, match or endorse any brokerage. LokalMatch is not a referral service, arranges no financing, and is paid nothing for an introduction between a borrower, a broker or a lender. Treat what you read here as general information, not legal or financial advice, and confirm any licence on the register of the regulator for the province where the property sits.