Toronto Land Loans can be secured for a large number of different applications that can relate directly or indirectly to the actual site location.
The great thing about a piece of real estate is that is always going to be easier to borrow against it compared to other forms of assets. For land financing, even if its bare land, both banks and private mortgage lenders can be interested in providing mortgage financing.
The one main key with land financing either in a bare land or some amount of development state is the property location and the potential marketability of the properly now and in the future. Mortgage lenders are always looking for exit strategies before extending financing, so if the property is in an active market where values and resale time periods are fairly predictable, then there is likely going to be land loan financing options to choose from.
The second thing to remember about Toronto land loans is that most mortgage lenders will not go above 50% of the fair market value of the property for any mortgage they are prepared to advance. Even in fairly active market areas, a bare piece of property or a semi developed piece of land is still going to be harder to move for a predictable price and in a fairly predictable time compared to an income producing or income supporting property.
A Toronto land loan can be secured for a number of purposes and the underlying real estate can also be used as security for a loan facility involving other piece of real estate or other assets.
Land financing under 50% loan to value can be a great source of bridge financing as the risk to the lender will likely be fairly low allowing a lending decision to be made fairly quickly with funds being advanced shortly there after.
If the borrower has a solid credit profile, a Toronto land loan can be secured through a bank or institutional lender provided that there is an established source of debt service available to cover the monthly payments.
If you’d like to learn more about locating and securing a Toronto land loan, I suggest that you give me a call and we can go over your requirements together and discuss relevant land loan options that meet your requirements.