“We Provide Land Development Loans And Bare Land Loans For Acquisition, Bridge Financing, and Future Property Development”

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.

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

“Toronto Land Loans Are Available on both Bare Land and Developed Sites”

Toronto Land Loans can be secured for a large number of different applications that can relate directly or indirectly to the actual site location.

The great thing about a piece of real estate is that is always going to be easier to borrow against it compared to other forms of assets. For land financing, even if its bare land, both banks and private mortgage lenders can be interested in providing mortgage financing.

The one main key with land financing either in a bare land or some amount of development state is the property location and the potential marketability of the properly now and in the future. Mortgage lenders are always looking for exit strategies before extending financing, so if the property is in an active market where values and resale time periods are fairly predictable, then there is likely going to be land loan financing options to choose from.

The second thing to remember about Toronto land loans is that most mortgage lenders will not go above 50% of the fair market value of the property for any mortgage they are prepared to advance. Even in fairly active market areas, a bare piece of property or a semi developed piece of land is still going to be harder to move for a predictable price and in a fairly predictable time compared to an income producing or income supporting property.

A Toronto land loan can be secured for a number of purposes and the underlying real estate can also be used as security for a loan facility involving other piece of real estate or other assets.

Land financing under 50% loan to value can be a great source of bridge financing as the risk to the lender will likely be fairly low allowing a lending decision to be made fairly quickly with funds being advanced shortly there after.

If the borrower has a solid credit profile, a Toronto land loan can be secured through a bank or institutional lender provided that there is an established source of debt service available to cover the monthly payments.

If you’d like to learn more about locating and securing a Toronto land loan, I suggest that you give me a call and we can go over your requirements together and discuss relevant land loan options that meet your requirements.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

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