The early first quarter commercial financing stats are out and in a nut shell, lending is up.
It would appear that the commercial lending divisions for banks and other institutional lenders are starting to get off the recessionary fence and wade into deeper water.
Some of the lending activity reported in Canada and the U.S. includes some “mega loans” used for financing takeovers. This is hardly the lowest risk of financing out there, so when major brand names are shelling out big dollars on short term bridge loans like they have been of late with these takeover financing facilities, the strong indication back to the rest of us is that the commercial lenders are getting more aggressive and trying to increase the level of their profits, which have been reduced over the last two years due to the recession.
For construction mortgage financing, this is also good sign as it would indicate that more lenders are going to be looking to invest in the long term mortgages that are the corner stones of their portfolios.
That being said, nothing is likely going to change radically in the short term. Lenders are still going to be cautious and will probably be picking their spots fairly carefully for near future.
But compared to this time last year, when everyone was sitting on their hands, the prospect for getting access to cheaper forms of financing to either retire your current construction loan or refinance a long term take out from a year ago are getting better all the time.
If you’re at the start of a construction project right now or somewhere in the planning stages, now would be a good time to get your construction mortgage broker busy on making inquiries about different lender’s long term commercial construction take mortgage programs as even though there may be increased interest, the process for getting financing is place is still moving very slowly and is going to take a while to complete, so you may as well allow for it and start early.
If you are in need of a construction take out mortgage right now, looking for a better deal than what you have in place already, or just planning ahead, give me a call so we can go over your requirements together and review some of the potential options that are available to you in the market.
Click Here To Speak With Construction Mortgage Broker Joe Walsh