Construction mortgage refinancing involves the repayment of the primary construction financing with another mortgage facility at or near the end of the construction project.

This is primarily required in the following three scenarios.

Build to Own. The property owner, builder, or developer is intending to retained the property after construction is completed and either self occupy it or rent/lease out the space to a third party.

Under this scenario, the construction mortgage would be refinanced by a long term take out mortgage, likely from a bank or institutional lender. The refinancing action would take place once the project has been completed an an occupancy permit granted to the property owner.

More Construction Funds Required. There are times when either more construction funds above and beyond the amount approved for the project are required and the initial construction lender is not prepared to provide further funding. In this situation, there is either a second construction mortgage registered behind the first mortgage, or the first mortgage is refinanced with a new mortgage set at a larger amount.

Another situation that happens where more construction financing is required is when the builder or property owner has not been able to get the primary construction lender to advance draws on time and/or for the full amount required to meet the obligations of the project.  In these cases, the construction mortgage in place is refinanced with a new construction lender.

Delay In Exit Especially in the case of condominium developments, there can be considerable delays between the time the construction project is finished and funds are available to the project from the sale of condo units.

When the project is completed, bridge financing can typically be arranged at cheaper rates than the construction mortgage rate due to the lower risk associated with a finished product.  A construction bridge loan can both lower the cost of capital for the project until exit funds become available and provide incremental capital to cover off the administration and operating costs of the project as well.

Depending on the specific project and the specific construction mortgage refinancing requirement, there can be both bank and private mortgage refinancing options to consider.

The best way to determine the right approach for a particular construction mortgage refinance request is to work with an experienced mortgage broker who has access to a broad array of construction financing sources.

Click Here To Speak Directly To Construction Mortgage Broker Joe Walsh For Your Construction Mortgage Refinancing Requirements

The post Construction Mortgage Refinancing first appeared on Ontario Construction Loans And Mortgage Financing.

“How Do Lenders Go About Approving Construction Mortgages?”

A construction mortgage approval is primarily based on three elements of the application: 1) project equity; 2) market strength and relevance; 3) exit strategy.

Depending on whether you’re working with a bank or private lending source, there are going to be other factors involved in the lender’s decision making process, but for the most part, the three elements above are going to be core to any construction mortgage financing application.

For project equity, each lender program will have a required amount of equity to be in the project before the lender is prepared to advance any funds. For instance, if the borrower or builder was looking to complete a construction project where the post construction value was $500,000 and the lender required an equity position of at least $100,000, then either the equity in the land at the time of construction needs to be worth $100,000 or the borrower’s initial investment into the project will need to cover the difference between initial property equity and the $100,000 equity requirement.

Market strength and relevance is all about making sure that the project has a pre-existing market for similar construction in the area where construction is taking place. Lenders are less interested in unique structural designs in remote areas than more conventional designs in well established areas.

The last core element is the exit strategy. For an institutional or bank lender considering a construction mortgage application for a single family dwelling, the take out mortgage for paying out the construction loan must be arranged and in place prior to the commencement of construction, providing a clear exit strategy to repay the construction loan. For a private lender, the exit strategy may be more about the strength of the resale market, that in the event of default, in completion, the lender is confident that the property can be sold under foreclosure in order to repay the construction loan and outstanding interest in full.

Having all these three elements in place at the time of application for a construction mortgage will greatly increase your chances of getting an approval for your project.

If you have a construction project you’re planning right now or are in the middle of, I suggest that you give me a call so we can go through your requirements together and review construction financing solutions that can meet your needs.

Click Here To Speak Directly To Construction Mortgage Broker Joe Walsh

The post Construction Mortgage Approvals first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Bad Credit Construction Mortgages Through Private Mortgage Lenders”

A bad credit construction mortgage is only going to be available through a private lending source as institutional lenders will all have some sort of minimum credit test that won’t get passed in situations where bad credit exists.

The more severe the credit, the higher the cost of financing and the tougher the draw requirements are going to be as lenders move to protect themselves from any type of loss scenario.

If the applicants credit is one of habitual late payments and debt write offs over an extended period of time with no change in the credit management practices in the near term, there may not be any one prepared to finance the project as this would speak to a difficult lending scenario and regardless of how high the rate to return may be for the lender, the opportunity may be viewed as too large a potential headache.

Individuals and businesses can have bad credit for a number of reasons that won’t preclude them from getting a bad credit construction loan either. For private lenders that don’t overly focus on the credit profile, the keys to providing a construction loan approval is going to be the amount of equity invested in the deal, the strength of the building plan as it relates to the property’s market place, and the exit strategy that will repay the construction mortgage at the end of the project. For self build situations, the private lender may want to see the take out mortgage arranged prior to construction to make sure that there will be no issue with the borrower being able to secure a long term mortgage.

As long as construction project makes good fundamental sense, there is likely going to be construction financing options available to the borrower. If a private lender can feel comfortable that the risk of loss is adequately covered off, the bad credit position of the borrower in itself is not likely going to decline the application. And if it becomes difficult to secure preferred rates and terms, the borrower may have to consider putting more cash into the initial construction to reduce the risk to the lender.

If you need a bad credit construction mortgage for a project you’re planning or in the middle of, I suggest that you give me a call so we can quickly go over your financing requirements together and review potential construction financing options.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Bad Credit Construction Mortgages first appeared on Ontario Construction Loans And Mortgage Financing.

“Get Bowmanville Construction Mortgages For Both Residential and Commercial Projects”

Bowmanville construction mortgages are available for many different types of construction projects. That being said, not all construction projects will be considered by each lender, so its important to be applying to and working with a construction mortgage lender that is best suited for the project you’re working on.

People sometimes ask what the difference between a construction loan and a construction mortgage. In almost all cases, a construction loan and a construction mortgage are the same thing with real estate security being offered to the borrower. Regardless of the phase of financing being funded, the lender will be registering a mortgage against the subject property and potentially other properties offered as additional collateral.

With Bowmanville construction loan requirements, its going to be important to be working with a mortgage broker that has access to both bank and private mortgage lending sources in order to make sure that you’re getting access to the funds required at any stage of the project. For instance, a land acquisition loan may be provided through a private lender while the take out mortgage at the end of the project will likely come from a bank or institutional lender.

Because more than one funding source is typically required through the life of the project, its important to make sure that the cash flow can transition from one source of financing to another as seamlessly and painlessly as possible. This can become quite difficult to accomplish if you’re trying to not only find lenders for different funding elements yourself, but also trying to figure out each lender’s approval process and draw administration process.

A mortgage broker with broad access to both institutional and private funding sources as well experience in working through the different lender requirements and procedures can not only make the process go a lot faster, but save you money through avoiding delays that can be created when funding is not available to be advanced.

If you require a Bowmanville construction mortgage for a project that is under way or one that you are going through the planning process for, I suggest that you give me a call so we can go through your requirements together and review construction mortgage options that can work within the time you have available.

Click Here To Speak to Construction Mortgage Broker Joe Walsh

The post Bowmanville Construction Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“Get Your Best Georgetown Construction Mortgage Options Today”

Georgetown construction mortgages are provided through our lender network that is made up of both bank, institutional, and private mortgage sources.

While Construction loans are primarily arranged for the actual structural building phase, construction financing can also be secured for a variety of other related stages in the overall construction process.

For example, site development or infrastructure development loans are a common form of construction financing and even before the land development stage, you may require financing to secure the property where the work will be completed.

With single family home builds, the construction build loan is followed by a take out mortgage that terms out the building costs and any other previous property mortgages into a long term repayment instrument, providing another form of related construction mortgage.

With respect to single family builds, especially self build projects where the borrower/builder would like to arrange financing through a bank or institutional lender, there typically is a requirement by the bank that the borrower needs to qualify for both the construction loan and the take out mortgage at the same time as the only way a bank will extend construction financing for a home build is if they can also get the long term mortgage as well.

Because of this bundled financing requirement, most single family homes are financed through private mortgage construction loans where there is no requirement on behalf of the private lender to have the take mortgage arranged in advance.

For larger residential and commercial projects, both bank and private mortgage construction loans are again viable options to consider. Each has their pros and cons related to the specific project and the requirements of the borrower or builder.

My role as a construction mortgage broker is to get you matched up with a lender that is a good fit for your requirements and can provide the rates and terms you’re looking for. This is another reason why we maintain relationships with both bank and private mortgage lenders as both can be relevant to many situations.

If you need a Georgetown construction mortgage for an existing project or one you are in the process of planning, I suggest that you give me a call so we can go through your requirements together and discuss the most relevant construction mortgage financing options available for your project.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Georgetown Construction Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“Peterborough Construction Mortgage Loans are available for land acquisition, site development, building construction, take out mortgage, construction bridge financing, mezz financing, and condo inventory loans”

For Peterborough construction mortgages, our customers include builders, property owners, developers, contractors, and home owners looking to do a self build or renovation.

We are focused on developing and maintaining Peterborough construction lending sources and sources for the entire southwestern Ontario area. This includes both bank or institutional, and private mortgage lending sources.

Depending on the project and the particular lender requirements, a private or institutional construction loan may be the preferred option. Our goal is to clearly understand what you’re requirements are and then get you matched up to a construction lending source that can best meet your needs in the time you have to work with.

Our services can extend to a complete construction mortgage financing scenario or be limited to funding one particular phase or capital requirement of the overall construction project.

For instance, may builders and self build projects may only require the actual construction building loan and have already lined up their long term funding source to pay out the construction loan on their own.

Another example of partial placement would be with respect to bridge financing and inventory financing. With larger condo projects, if there is a delay in getting condo registration or the condos are not selling as fast as projected, we can arrange a condo inventory loan to help cash flow the project until the sales and/or registration is completed.

With a bridge construction financing request, there typically is construction financing already in place when the client contact us, but for some reason additional funds are required and cannot be originated by the primary lender. In many cases we can arrange small bridge loans to be put into place in a matter of days allowing the project to stay on track.

For larger scale projects where more than one source of construction mortgage financing is going to be required for different phases, we work closely with the client to not only arrange the necessary funding, but to also make sure that there is a seamless transition from one funding source to another during the project.

If you’re in need of a Peterborough construction mortgage for a project you’re working on, I recommend that you give me a call so I can quickly assess your requirements and provide you with relevant construction loan options for your consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Peterborough Construction Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“Kingston Construction Mortgage Financing For Residential and Commercial Projects”

We provide Kingston construction mortgage financing to builders, property owners, and land developers from a variety of different construction lending sources including both bank and private mortgage lenders.

Because one of our specialties is construction financing in the southwestern Ontario area, we stay on top of the market and make sure our customers have access to any type of construction related financing they may require.

Most construction projects have at least two or three separate construction financing mortgages and each of these may even need to come from a different lender. So to make sure everything flows smoothly, its important to work with a construction mortgage broker that can not only access the construction funding you require for a particular application, but also help you seamlessly transition from one financing source to another.

If you take a self build home project as an example, the owner may or may not need a mortgage to acquire property where construction will take place. Next, they will require the construction build loan and once its complete they will need a construction take out mortgage to consolidate all previous costs into a long term mortgage.

For larger residential and commercial projects, there can be even more funding requirements by phase of project, which can also range from standard debt financing to mezzanine financing as well.

The larger the construction project, the more complex the administration of the construction financing can become, especially when you’re working with an institutional source for your Kingston construction mortgage. This is an area where experience can mean everything in getting problems with cash flow solved quickly and having the overall project stay on track.

If things do go awry for some unforeseen reason, we also can provide out clients with construction bridge loans to cover cost overruns or draw cut backs or other funding shortfalls. Depending on the project, a construction bridge loan can many times be put into place in just a matter of days.

If you’re in need of a Kingston construction mortgage for a project you’re planning or in the middle of, give us a call so we can quickly assess you requirements and provide relevant construction mortgage financing options for your consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh.

The post Kingston Construction Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“Orillia Construction Mortgage Loans Are Available For A Number of Construction Financing Applications”

Orillia construction mortgages can be required for a very broad number of construction applications ranging from land acquisition to construction builder loans and take out mortgages.

As a construction mortgage broker, my clients include builders, property developers, property owners, and home owners looking to do a self build project.

The lenders I work with include institutional and private mortgage funding sources that will collectively look at a wide range of residential and commercial projects.

Many people don’t realize that private mortgage lenders provide more construction financing mortgages than all the institutional lenders combined. There are a number of reasons for this including privates having a shorter application process and banks having a large number of requirements including pre approval of a take out mortgage for residential self build projects.

But even within one project, both private and institutional construction loans may be required as the different phases of a construction project may require and qualify for different types of funding.

For instance, the average construction project will require two or three separate construction related mortgages during the life time of the project. As a result, its important to not only be able to access the different forms of construction financing you may require, but its also important to be able to seamlessly manage the transitions involved from one source of funds to another.

This is where an experienced Orillia construction mortgage broker comes in to not only help you locate and secure the construction financing your project requires at any given point in time or project stage, but also to help you work through any and all administration issues related to the draw advances you may experience with the lenders you’re working with.

The borrower and lender matching process should also not be under estimated as too often builders or property owners get overly fixated with interest rate and don’t completely understand what type of administrative requirements come with it. The better the fit between what you require and what a construction lender is offering and expecting, the smoother the overall project is going to flow.

If you need an Orillia construction mortgage for a project that you’re planning or in the middle of, I suggest that you give me a call so I can quickly assess your requirements and provide relevant construction mortgage options for your consideration.

Click Here To Speak With Orillia Construction Mortgage Broker Joe Walsh

The post Orillia Construction Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“We Arrange London Construction Mortgages and Loan Financing For a Wide Variety of Construction Projects”

London construction mortgage loan financing is available from a number of our mortgage financing partners that service the London and southwestern Ontario area.

We provide our clients with construction loans and construction mortgages for both residential and commercial construction projects. Our clientele ranges from the individual home owner doing a self build project to a builder or developer requiring construction financing for a larger scale residential or commercial property.

There can also be considerable variability in construction financing applications even among similar projects as different phases of construction can require a unique financing application.

For instance, a project may first require a mortgage to acquire property, then secure a construction loan for site development, followed by a builder loan or some form of mezzanine financing to fund the main portion of the overall project. If the owner or builder is going to retain the real estate post construction, then a take out mortgage will need to be arranged to consolidate the construction mortgages outstanding. If a construction project goes over budget and requires additional capital to complete the work, then we will arrange a construction bridge loan to cover off the additional costs.

Depending on the project, borrower, and phase of construction requiring capital, the best available solution may be either a bank or private mortgage financing solution. This is one of the reasons we maintain strong relationships with both institutional and private mortgage lenders as one or the other can be most applicable to a given project.

One of the keys to successful construction financing for any type of project is a near seamless transition from one form of financing to another as most construction projects require two or more construction mortgage facilities during the life time of the project. This is an area where our experience and focus with London construction mortgage financing pays big dividends to our clients as we are used to helping our customers work through the various challenges that can impact the cash flow of any construction project.

If you require a London construction mortgage loan, I suggest that you give me a call so I can quickly assess your requirements and provide you with construction loan options for your consideration.

Click Here To Speak With London Construction Mortgage Broker Joe Walsh

The post London Construction Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Ancaster Construction Mortgage Financing For Both Residential and Commercial Construction Projects”

Ancaster construction mortgage financing is available from a number of our institutional and private mortgage lending sources. For smaller construction projects, the majority of construction mortgage loans that get placed on a monthly basis are from private lending sources due to the flexibility and speed they provide they provide compared to bank construction loans.

That being said, we also provide bank construction financing facilities for both large and small projects. The key to successfully utilizing bank construction funding is making sure you have the application paper work in order and having access to a reserve account of some sort to deal with any potential delays or cut backs in draw funding that are more likely to occur with institutional construction financing compared to other forms of funding.

Construction mortgages can also cover a lot of different aspects of a given project. From land acquisition through to take out mortgage financing, each stage of the project may require a different debt or equity construction financing facility to move the project along. And each different construction loan application may also need to come from a different lending source.

For instance, if you have an institutional lender providing the building construction loan and the project starts to run over budget, you may have to secure a private mortgage bridge loan against the remaining equity in the property to provide the additional capital required to finish the project.

This is one of the many reasons why its important to work with an Ancaster construction mortgage broker to not only source the type of construction mortgage you need at a given point in your project, but to also seamlessly help you coordinate your mortgage administration when more than one type of construction loan is outstanding at any one point in time.

We have direct access to a broad spectrum of private and institutional Ancaster construction mortgage lenders collectively capable of covering off most capital requirments for both large and small construction projects.

If you’re in need of Ancaster construction mortgage financing, I suggest you give me a call so I can quickly assess your requirements and provide relevant construction mortgage financing options for your consideration.

Click Here To Speak With Ancaster Construction Mortgage Lender Joe Walsh

The post Ancaster Construction Mortgage Financing first appeared on Ontario Construction Loans And Mortgage Financing.