A Toronto construction bridge loan is typically required at or near the end of a construction project to provide the cash flow necessary to complete all the work and/or sell off completed units.
There can be many reasons for a construction bridge loan including cost overruns during the project, changes in scope that added to the overall project costs, delays in draw advances or draw cut backs by the construction mortgage provider all ready in place, and so on. Regardless of the reason why funds are required, the situation typically calls for immediate access to the additional capital required so that the project doesn’t slow down or stall out completely, creating even more costs or worse for the owner or builder.
Because the construction bridge financing is sought near the end of the project, the work done to date has increase the property value and most of the construction risk has been eliminated, providing a fairly straight forward picture for a private mortgage lender to finance against. Like all construction loans, a construction bridge loan is secured by a mortgage registered against the property behind whatever current mortgages are in place. From the time of application to funding, a construction bridge financing mortgage can be put into place in two to five business days which is about as fast as mortgage related financing gets.
The key to getting a Toronto construction bridge loan in place quickly is to work with a construction mortgage broker who has direct private lending sources that are prepared to provide these types of loans on very short notice. In addition, the mortgage broker will need to have a good working relationship with a real estate lawyer who is ready and willing to turn the documentation around quickly. Without the team of construction mortgage broker, lawyer, and private mortgage lender working closely together, its highly unlikely that anything will happen right away which can put even more pressure on your project. In many cases, the bridge financing amount requested is less than $100,000, which allows the private lender to make a very quick decision without having to get into an excessive level of detail during the application and assessment process.
If you require a Toronto construction bridge loan, I recommend that you give me a call so I can quickly assess you requirements and provide relevant construction bridge financing options for your immediate consideration.