“We Provide Aurora Land Loans and Land Mortgage Financing Facilities”

An Aurora land loan or bare land mortgage can be acquired through our network of institutional lenders and private lenders.

With bare land, the keys to the available financing amount that you can expect to secure include location, current use, expected future use, zoning, and so on. The more removed a piece of property is from future development in terms of time and location, the less loan to value. For instance, a bare piece of property in the middle of no where will likely not provide a mortgage amount greater than 50% of the property value. This relates to a likely slow resell time period in the event of default and foreclosure. Properties that are in a more active market area and/or will soon be developed to increase value will provide a higher lending value as a percentage of market value to the lender’s view that resale will be faster if required, and overall risk of loss will be lower.

For bank or institutional lenders to consider providing an aurora land loan, you will also be able to show a strong ability to debt service from existing cash flow. The cash flow available to the borrower can come from an unrelated source.

Private lenders are going to be less concerned on the historical proof of cash flow for debt service, although debt servicing is likely going to be required on a monthly basis.

The majority of Aurora bare land loans or land mortgages are provide by private lenders that have a good working knowledge of the local market and can take a hands on approach to loan and security assessment. Private lenders do have a higher cost of funds, but they tend to be interest only monthly payments with terms of one year in most cases. Private lenders can be excellent sources of short term financing, especially when you’re in a hurry and need to get something in place in a relatively short period of time.

Bank or institutional land loans will take longer to arrange so if you believe you can meet their requirements and want to take advantage of a lower cost of funds, then make sure you allow yourself plenty of time to go through the application and approval process.

If you require an Aurora land loan at this time, please give me a call so I can quickly assess your situation and provide relevant options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Aurora Land Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Aurora Construction Loans For Commercial and Residential Construction Projects”

Aurora construction loans can come from a number of different sources. The lower cost funding comes from the major schedule A banks, but in many cases, the large banks will not be interested in certain types of construction financing, or will have very stringent requirements for lending money on these types of requests. Second tier banks are also significant players in providing construction mortgage financing, especially with mid sized projects. For smaller projects, private mortgage construction financing can sometimes be the major capital provider in some areas, depending on the project mix.

In the end, the process is about matching your project and requirements up to the best potential lender fit that exists in the market at a particular point in time. This can be further extended to construction project phases where the financing requirements of each stage of the project may be more relevant to a certain group of lenders.

In most cases, regardless of size, construction projects require two or more forms of mortgage financing during the life time of the project. This can start at the point where land being being secured for a development and extend all the way to a take out mortgage or construction inventory financing facility for units that are completed but not yet sold.

In order to get an Aurora construction loan that meets your requirements and is put into place in the time you have to work with, the best approach you could take would be to work with a construction mortgage broker with experience placing different types of construction mortgages in your area.

And if you do have a multi phase project that will require more than on type of construction loan, it will be that much more important to be working with a broker that can not only source the different requirements, but also assist in managing the transition from one mortgage to another without causing any cash flow disruptions.

If you are in need of an Aurora Construction Loan for a residential or commercial project, I suggest that you give me a call so I can quickly assess your requirements and provide you with relevant construction mortgage financing options for your immediate considerations.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Aurora Construction Loan first appeared on Ontario Construction Loans And Mortgage Financing.