Costs And Commissions

We charge a success fee which is due on the release of the loan. The amount of the commission varies, depending on a number of issues, from 2% to 3% of the loan.

Furthermore we charge the so called “origination fees”, which are costs for preparing, packing, securitizing and placing the loan package in the market (funding the loan). These costs cover lawyers, financial advisors, market specialists, bank costs and other operational costs which we can not fully afford on behalf of the Client. The origination fees usually range from 1% to 1,5% and are usually defined on a case by case base. The origination fees are usually due upon approval of the project by the mortgage banker.

The Client may also incur in other expenses like a performance insurance which may be necessary during the period of execution of the project, depending on the collateral guarantees he can provide. This insurance, when needed, may be provided directly by the Client or negotiated by IRMF Corp. on his behalf. Average costs of this kind of insurance is 1% to 1,5% of the loan.

We usually work with fixed rate loans only. Average period of the loan, in this case, is 10 years (seldom it may reach 15 years). Average annual interest range between 7% and 10% depending on a number of issues. It is usually possible to make advanced payments of chunks of the loan, which may result in lower overall cost of the financing.

At last the Client will have the obligation to pay a global estate insurance to prevent risks that may affect the global value of the mortgage (the financed building). This insurance will have to be with an internationally recognized insurance company. As for other insurances possibly needed during the funding process, the Client is free to provide this insurance directly or to ask us to negotiate the best condition on his behalf.