Brampton land financing options can range to property this is bare land in nature, to partially developed, fully developed, and anywhere in between.
Land financing can also be acquired from both banks and private mortgage lenders. The key distinction between the two is that a bank or institutional lender has a primary focus on cash flow and a secondary focus on the value of the security where a private mortgage lender is pretty much the exact opposite.
One thing that is fairly common between banks and privates is that undeveloped land typically is not financed above 50% of the current fair market value. As the property is improved, especially in a developed area, or soon to be developed area, the loan to value the lender is prepared to entertain will increase.
Brampton land financing can also be used for a wide range of purposes including acquiring the underlying land, financing a construction loan, providing additional security for a mortgage on another property, securing a bridge loan, and so on.
If funds are required quickly, the private mortgage financing is more likely going to be the property mortgage of choice as depending on the property, location, and resale market potential, a private mortgage can be put into place in two to five days which is about as fast as things can move in the mortgage market.
Institutional land financing options are going to be lower cost compared to private mortgages, but they will require more time in get in place on average and can come with significantly more support information requirements as well.
If you have enough lead time to arrange the financing and think you will qualify for an institutional mortgage, then there could be considerable cost saving to you over time from the lower level of debt service that will be coming out of your monthly cash flow.
If land financing is used for developing the property, if the work performed increases the market value, additional funds may then be acquired based on the increase in the equity position of the property.
In order to better understand your Brampton land financing options, I suggest that you give me a call so I can quickly go over your situation and provide relevant land loan options for your immediate consideration.