Wasaga Beach Construction loans and construction mortgage financing programs are offered by both bank and private mortgage lending sources.
All construction loans come in the form of a registered mortgage placed against the property where the construction is taking place as the value added work that increases the property value is typically needed to maintain the loan security.
For smaller residential and commercial projects where there are four or less units involved in the project, construction financing is most often from private mortgage lenders. For the most part, private mortgage lenders as individuals will provide financing amounts under $2,000,000, which is the price range for most small construction projects.
This is not to say that smaller construction cannot be financed via bank or institutional loans. Its just that bank or conventional construction mortgage financing sources take longer to get in place and have more qualifying requirements than private mortgage lenders.
For larger projects, the majority of construction funding tends to come from some type of institutional construction lender. This can include mezzanine financing sources that act as quasi equity for projects in order to secure the remaining capital as debt financing.
Wasaga bean construction loans, like construction financing in other southwestern Ontario regions, can vary by project type and project phase. While the most common form of construction loans are issued for building construction, related construction financing is also provided for land purchase, land development, long term take out mortgages, condo inventory financing, and construction bridge loans.
In order to make sure that your construction project will have the capital in place for any or all of these requirements, its going to be important to work with an experienced construction mortgage broker who has access to a broad spectrum of construction mortgage lenders that are interested in projects in your area. Failing to do this can leave you scrambling for cash flow at in opportune times which can end up costing you both time and money in the long run.
If you need a Wasaga Beach construction loan for a project you are planning or are in the middle of at the present time, give me a call so I can quickly assess your requirements and provide relevant construction financing options for your consideration.