Commercial Process

Submit Application

Sizing the loan involves the underwriter completing an early assessment of the lender’s ability to complete the loan and on what terms including loan size, interest rate, term, amortization, prepayment options, requirement for reserves and security. Sizing of the loan will form the basis of a letter of intent.

Letter of intent is issued

A letter of intent (LOI) is a non-binding offer to finance. It provides the borrowers with a high level overview of the terms and conditions that the lender could provide.

Letter of intent is signed, and sent to MCAP

MCAP underwrites the loan

Underwriting the loan involves completing the necessary due diligence for the loan to accurately assess the risk and return that the lender is taking for making the investment.

MCAP issues commitment letter to client or broker

The underwriter issues the lender’s standard commitment letter which is the contract that binds the borrower and lender to the loan transaction

Commitment letter is returned, signed, with conditions met

MCAP sends out funding instructions

The professionals involved with the loan (“the loan team”) receive instructions, which ensures that they perform the tasks that are required to successfully close the loan

Loan servicing/ portfolio management

The loan is boarded to the servicing system that collects payments and distributes to investors. The servicing team ensures the interests of the borrowers and lenders remain well protected by following up for timely payment of municipal taxes and adequate insurance coverage of the real estate. The portfolio management team handles post-funding requests for changes to the loan structure or to the ownership, and related covenants.

Commercial Mortgages Group (“CMG”) provides customized loan servicing solutions for pension funds, life insurers, banks and other institutional lines of business with total assets under administration in excess of $5B. Investors who outsource with us enjoy the benefits of being able to focus on key investment decisions for their mortgage portfolios while we take care of all the back-end paperwork. CMG's team of dedicated commercial funding and servicing specialists administer loans held by both whole loan portfolio investors and public capital market entities. CMG has been appointed as a Master and Special servicer for various CMBS transactions. This appointment is an acknowledgement of CMG’s servicing capabilities.

CMG’s commercial servicing capabilities are reviewed and rated by Fitch and Standard & Poor’s annually. We are proud to be the first commercial mortgage servicer in Canada to achieve the rating of "above average" from Standard & Poor’s. Institutional investors looking to outsource their mortgage portfolios choose MCAP because we offer a full-service package that includes:

Proven and experienced staff: CMG's broad and specialized servicing team have the practical and professional experience in all economic conditions to provide the best in expert service to our investors.
Flexible servicing technology: CMG seeks to understand your business requirements. We customize our service offering to reflect your individual needs, ensuring the information and level of service your stakeholders expect is provided.
Multiple servicing platforms: CMG provides targeted lending for all industries, and we can tailor our service offering to meet your needs, no matter how simple or complex.
Institutional controls, regulatory requirements:As a rated servicer and CMHC approved lender, MCAP meets all regulatory and institutional requirements, including audit and insurance standards, OSFI guidelines (B20 etc.), anti-money laundering, and business continuity planning.
Information Security: Maintaining the integrity of you and your client’s personal financial information is one of our top priorities. By providing the latest technology and ensuring our staff stay up-to-date on security issues, MCAP takes every precaution to keep your data safe.
Business Continuity and Disaster recovery programs: MCAP’s scale of operations allows us to have comprehensive business continuity arrangements including multiple operational and data/ information storage locations and detailed disaster recovery procedures that are regularly tested giving our clients peace of mind.
Financial strength: Since 1981, MCAP has been serving the mortgage industry and is one of the largest independent lenders in Canada. With more than $111 billion in assets under management, we are a solid, long-standing and respected financing alternative to traditional products for borrowers and investors alike.

Broker’s Finder Fee

MCAP offers a competitive compensation plan for all valued mortgage brokers. Brokers are compensated with a Finder’s Fee for Personal Mortgages; depending on length of mortgage and whether it is a closed or variable term, fee to be negotiated.