A Toronto land development loan for improving an existing piece of real estate in either a bare land or partially developed state can be secured from a number of different institutional and private mortgage lending sources.
Because of the strength of the overall Toronto market, there is almost always a lender interested in virtually any type of property. Obviously the more challenging the property, the harder its going to be not only find real estate property lenders but also to secure superior rates and terms of repayment.
In most situations, a Toronto land development loan is a short term requirement as the land is being improved for a near term purpose that will result in either a transition into a building construction project, or the resale of the property to other developers or builders that will further add to the real estate. As a result, the majority of these types of construction financing obligations come from private mortgage lenders that have a focus in land development financing. There may also very well be an institutional land development financing option available for a given property, but the conditions of financing will have to meet the requirements of the borrower. For instance, for a single family home, no land development or construction financing can be secured through a bank or institutional lender unless the lender will also receive the long term property mortgage that will remain at the end of property improvement and construction. With a private mortgage, the requirements for land development financing are not as rigid and as a result, many of the smaller scale residential and commercial land development projects are funded via private mortgage financing.
The best way to determine what type of financing is 1) available to you for a specific property and 2) the best fit for your requirements and the time you have to work with is by utilizing the services of a experienced construction mortgage broker that has a track record placing Toronto land development loans.
If you require a Toronto land development loan, please give me a call so I can quickly assess your requirements and provide land development financing options that meet you needs and can fit into the time frame you are working in.
Click Here To Speak To Toronto Construction Mortgage Broker Joe Walsh.