Commercial Mortgage Costs

When it comes to commercial financing there are typical fees that are associated with arranging financing. See below for a list of the most common fees and expenses that you must consider when acquiring financing for your commercial real estate property.

Real Estate Appraisal

Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property. Commercial real estate transactions require appraisals to determine to true value of the property. An appraisal report can be used to establish a sale price for a property.

Starting at $1,500.00

Environmental Phase 1

An environmental site assessment is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities. The analysis, often called an ESA, typically addresses both the underlying land as well as physical improvements to the property. The actual sampling of soil, air, groundwater and/or building materials is typically not conducted during a Phase I ESA. The Phase I ESA is generally considered the first step in the process of environmental due diligence.

Starting at $2,500.00

Environmental Phase 2

If the potential for contamination is discovered during the Phase I study then a Phase II ESA is required. The purpose of a Phase II Environmental Site Assessment (ESA) is to define the nature and extent of contamination that may pose an environmental risk associated with the site. A Phase II ESA is accomplished through an intrusive investigation; collection of soil and groundwater samples through drilled boreholes or test pits, and/or collecting fragments of building materials for formal analysis of various contaminants.

Starting at $5,000.00

Legal Fees

Legal fees include fees for the professional services provided by your lawyer or notary, costs involved in conducting a title search, drafting the title deed and preparing the mortgage, as well as registration fees and other disbursements.

Starting at $3,500.00

Title Insurance

When you buy real estate, you receive a deed representing your ownership, also known as the title. Title insurance can protect you against a host of known and unknown title and off-title related issues, can mitigate the risk that your closing will be delayed and can offer protection to you in the event your interest in the title is ever challenged. Coverage includes but is not limited to losses related to survey and municipal issues, fraud occurring prior to closing or during the insured transaction, compliance with zoning by-laws and previous non-compliance with certain reciprocal agreements.

Starting at $1,500.00

Quantity Survey

A Quantity Survey is conducted by a construction industry professional with expert knowledge on construction costs and contracts. They are not to be confused with Land Surveyors or Land Survey Engineers. Services provided by a quantity surveyor may include cost consulting, cost estimating, cost planning and commercial management throughout the entire life cycle of the project from inception to post-completion, value determination, risk management and calculation, commercial management and contract administration, cost management process and assessing the additional costs of design variations.

Starting at $2,500.00

Lender Fee Deposits

A lender fee deposit or application fee is charged by the lenders to begin the process of reviewing your file. All commercial real estate lenders and banks charge some sort of application fee in order to pay for their time and costs in arranging commercial real estate financing. These costs vary by lender and can be non-refundable.

Varies by Lender

Lender Fees

Payable to the commercial mortgage lender or bank for arranging the finance. This will either be added to the overall loan or deducted from the loan at completion. This fee is determined based on complexity of the transaction, time to arrange financing and overall risk of the commercial real estate property.

Starting at 1%

Broker Fees

Commercial mortgage brokers also charge a fee for their time involved in locating the best financing solutions for their clients. This fee is due on successful receipt of a formal mortgage offer and acceptance from the commercial mortgage lender.

Starting at 1%

Contact Our Commercial Lending Team to Discuss Costs for Your Commercial Mortgage Transaction

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