Orangeville construction loans can be placed through both our private mortgage and institutional banking sources that provide construction financing programs in the Orangeville and surrounding area.
Bank’s are the lowest cost source of construction mortgages and loans but are also more challenging to deal with in terms of the time it takes to get a construction financing facility in place and the process for administering the draws.
If you’re interested in securing a bank construction loan we can definitely assist you with the process and will also provide you with important guidelines to keep in mind when working with an institutional lender that you may not be aware of.
Because conventional construction loans can be much more administratively intensive, the majority of construction loans that we place come from private mortgage funding sources that tend to focus on Orangeville construction financing and construction lending in other parts of the southern Ontario.
Private mortgage construction loans are very common with smaller scale projects that are going to be completed in a relatively short period of time where the construction financing costs would not be significantly different between bank and private mortgage options due to the short time the money is outstanding.
For larger scale residential and commercial projects, especially multi unit condo builds, the financing is more institutionally based for the building stage. But with larger projects, its not uncommon that there is a mix of bank, private mortgage financing, and potentially equity required to cover off all the funding requirements each stage of the project may require.
For instance, Orangeville construction financing can start with a land acquisition mortgage for the purchase of the land on which the project will take place. Even if the property is purchased for cash or has no outstanding mortgages against it, a development loan may be required from a private mortgage lender to get it to the building stage where an institutional construction mortgage lender will get involved.
There can be many different potential combinations of conventional and private financing that goes into a given construction project, so the key to successfully cash flowing the project during its entire life span is to be working with a construction mortgage broker who can source the different types of debt or equity financing that your project may require.
If you require Orangeville construction financing, I suggest that you give me a call so I can quickly assess your requirements at whatever stage of the project you’re at and provide relevant construction financing options for your consideration.