We provide London construction mortgage financing options for property owners, developers, and builders working on a wide variety of residential or commercial construction projects.
Projects can range in size of $20,000,000 to $20,000,000 in everything in between. And while there is a significant supply of construction funds available in the market place, the key to locating and securing the construction financing that will meet your project’s requirements is working with bank or institutional construction financing programs that best fit your needs.
As construction mortgage brokers servicing the London and southwestern Ontario area, we work hard to maintain relationships with all the different types of construction funding that can be required on any given project.
For instance, we have clients that first need to secure financing to acquire bare or development land. The rates and terms that can be arranged will have a lot to do with the current condition of the property the re-marketing potential. Sometimes these deals can be done through an institutional lender, but in most instances, especially if the building stage will soon follow, land acquisition loans are provided by private mortgage lenders.
When the land is at or approaching the development stage, a third party source of capital may also be required to cover the development costs for improving the landscape and installing infrastructure such as roads and utilities. This can be required in the form of debt or equity, depending on what further investment the owner is the property is planning to make, and the remaining equity in the property that can be utilized to secure debt financing.
The most common type of construction mortgage is for the building stage, which once again will be some combination of debt and equity financing. If third party equity is required on projects of $5,000,000 or higher, mezzanine funding can potentially be arranged to keep the balance sheet for the project in order and allow for the maximum amount of third party capital to come into the project.
Different stages of construction can require different financing which is why we work with a broad spectrum of construction lending sources in order to be able to provide for all the potential construction financing needs of any given project.
If you’re currently seeking a London construction mortgage for a project your planning or that is underway, I suggest that you give me a call at 416 464 4113 so I can quickly assess your situation and provide relevant construction mortgage financing options for your review and consideration.