Construction loan brokers in Toronto, or anywhere else for that matter, can play a very significant role in any type of construction project.
While most people will seek out a construction loan broker to source capital for their project, the reality is that the service can go far beyond just finding a construction lender.
First, different types of projects and project phases will require different types of construction loans or construction mortgages. An experienced construction loan broker will be able to identify the best loan and lender combination for a given situation, saving time and money in the procurement process.
Second, once an approval is in place, the borrower or builder is still going to have to comply with all the construction mortgage requirement before the all important first draw advance is made. This can be no simple task at times and with the assistance and coaching from a construction loan broker problems that do arise can be quickly dealt with without impacting the project.
Third, most construction projects require two or more different types of mortgage financing during the life of the project. A proper financing plan will allow for all phases of financing at the outset so that any and all construction loans that are put into place will align with the overall requirements of the project. As an example, a typical construction build can first require a land loan to acquire and develop the property, a building loan for the actual construction, and a long term take out mortgage to pay out and consolidate the previous loans into a long term mortgage registered against the property.
Its also important to be working with a construction loan broker that has access to both bank and private construction financing programs as many times both can be required within one project. A typical scenario will have the actual construction loan come from private lending sources and the long term take mortgage come from an institutional source.
If you’re planning a construction project or in the middle of one and need the help of a construction loan broker in Toronto or other areas of Ontario, please give me a call so I can quickly assess your requirements and go over different financing programs that would meet your requirements.