When looking to secure Toronto construction financing for an Ontario based residential or commercial building project, you need to break down the construction financing procurement process in these three steps.
First, you need to make sure you’re applying to the most relevant construction mortgage lenders. All projects are going to have their own best supply fit and the sooner you zero in on the right audience, the faster construction financing will fall into place.
Second, once you’ve gone through the initial application process and found a construction mortgage lender that is prepared to commit to your project, you’re going to need to negotiate and finalize the conditions of a funding commitment. This is a step where lots of good funding opportunities fall to the way side due to the two parties failing to reach final agreement. Each project can have unique requirements and each lender will have its own funding policies, so its not a given that even though both parties are mostly in agreement that a final consensus on terms and conditions will emerge.
The last stage is actually getting the construction loan provider to issue a draw request. Before the first draw is advanced, the construction financing source does not have a vested interest in the project and can hold off advancing funds indefinitely if the lender does not feel that all the terms and conditions of funding have been properly met. Its not a given by any stretch that just because a signed commitment to fund a construction project is in place that funding will actually flow when its supposed to or at all.
Until all three steps have been complete, there is no Toronto construction financing. And because funding can fall apart at any point, there is always risk that there will be construction financing problems.
To increase your probability of both securing and getting a construction loan funded, its highly recommended that you work with an experienced construction mortgage broker that has experience navigating through all the things that can go wrong during the construction financing procurement process and help keep both your budget and time line on track.