Commercial Mortgage Broker vs Going Direct to a Bank: What Actually Saves Money
February 5, 2026 • Travis Penny
Sponsors with a strong existing bank relationship sometimes ask whether they need a commercial mortgage broker at all. The honest answer: not always. Here is when a broker actually moves the needle and when going direct is fine.
When a Broker Wins
You don't have a deep institutional debt fund or life company relationship. The deal is over $10M and pricing competition matters. The asset class is specialized (hospitality, healthcare, construction). You need bridge debt and the takeout structure has to be coordinated. You're shopping a HUD deal and need a MAP correspondent.
When Going Direct Is Fine
The deal is $1M to $5M and your bank already knows the asset. The asset is owner-occupied SBA-eligible commercial real estate where your bank has a strong SBA desk. You have a long-running banking relationship that prices competitively.
What a Good Broker Actually Does
Three things. First, runs the file past the right 5 to 10 lenders out of the 200+ active capital sources, not all 200. Second, negotiates term sheet language — recourse carve-outs, prepay structure, holdbacks, reserves — that costs nothing in pricing but saves real money over the loan term. Third, manages the deal from term sheet through closing so the sponsor focuses on the asset, not the lender process.
How Brokers Get Paid
On institutional deals, brokers are paid by the lender or by the borrower at closing — typically 0.5% to 1.5% of the loan amount depending on size and complexity. Smaller balance bridge and hard money deals run higher because the work is the same on a $2M deal as on a $20M deal.
Have a deal that fits this?
Send the file or pick up the phone. I answer 7 days a week.