Commercial Mortgage Brokering

Module 1: Introduction to Commercial Mortgages

• Defining commercial mortgages and key differences from residential
• Primary purposes (acquisition, refinancing, development, etc.)
• Key players in commercial transactions
• Overview of the Canadian commercial mortgage market
• Strategic role of commercial mortgages and brokers

Module 2: The Role of the Commercial Mortgage Broker

• Broker responsibilities and value proposition
• Essential skills and knowledge
• Relationship-building with lenders and clients
• Ethics, compliance, and value-added services
• Case study: Successful commercial mortgage brokering

Module 3: Types of Commercial Properties

• Retail, office, industrial, and multifamily properties
• Mixed-use and special-purpose properties
• Trends, income potential, and financing considerations for each type

Module 4: Types of Commercial Mortgages

• Traditional, bridge, construction, mezzanine, hard money, and CMBS loans
• Preferred equity financing
• Key features, uses, and requirements

Module 5: Commercial Mortgage Lenders in Canada

• Overview of banks, credit unions, private, institutional, and government lenders
• Mortgage Investment Corporations (MICs)
• Lender strengths and unique characteristics

Module 6: The Business Development Bank of Canada (BDC)

• BDC’s mission, history, and loan programs
• BDC’s underwriting process and advisory services
• Steps to secure BDC financing

Module 7: Interpreting Financial Statements

• Understanding income statements, balance sheets, and cash flow statements
• Key ratios and metrics for lending decisions
• Identifying red flags

Module 8: Credit and Risk Analysis

• Components of credit analysis (credit score, DTI, DSCR, liquidity)
• Profitability and risk factors
• Business credit profiles and reports

Module 9: Loan-to-Value (LTV) and Debt Service Coverage Ratio (DSCR)

• Importance of LTV and DSCR in underwriting
• Calculation methods and examples
• Tips for improving ratios

Module 10: Commercial Appraisals

• Types of commercial appraisal methods
• Key components of an appraisal report
• Preparing for appraisal and the role in underwriting

Module 11: Environmental Site Assessments (ESAs)

• Types and purposes of ESAs (Phase I, II, III)
• Key environmental risks and compliance
• Case studies

Module 12: Legal and Regulatory Considerations

• Legal frameworks and compliance in underwriting
• Zoning, building codes, environmental laws, and borrower/lender rights

Module 13: Loan Structuring and Terms

• Commercial loan structures and repayment options
• Common loan terms and conditions
• Example scenarios

Module 14: The Commercial Mortgage Application Process

• Step-by-step application and documentation
• Preparing a strong loan package
• Best practices and common pitfalls

Module 15: The Underwriting Process – A Lender’s Perspective

• Analyzing borrower and property financial health
• Assessing ratios and property/market analysis
• Structuring terms and approval process

Module 16: Loan Closing and Funding

• Closing process and legal documentation
• Final due diligence and issue resolution
• Example of a successful loan closing

Module 17: Post-Closing Servicing and Management

• Loan servicing responsibilities
• Handling delinquencies, refinancing, and post-closing support

Module 18: Exit Strategies

• Overview of exit strategies in commercial financing
• Refinancing, selling, loan payoff, and analyzing scenarios

Module 19: Case Studies

• Real-world examples of commercial financing scenarios
• Lessons learned and key takeaways

Module 20: The Future of Commercial Mortgage Brokering

• Emerging trends and technology
• ESG factors and regulatory changes
• Skills for future brokers

Appendix: Glossary of Terms and Definitions

Bonus:

• Downloadable tools, sample documents, and checklists
• Certificate of Completion upon passing the course