“We Provide Toronto Building Mortgages For Home and Commercial Projects”

A building mortgage in Toronto can be arranged for anything from a single family dwelling construction project to a commercial or industrial facility build. Construction financing is provided through our institutional and private mortgage lending sources that service the Toronto and surrounding area.

For residential building mortgage financing, the bank related options are lower cost, but also require a pre approved take out mortgage to be in place with the same lender prior to construction as this is the only way a bank or institutional lender will provide a builder loan for a single family unit. This is one of the reasons private mortgage construction loans are more common even if they are priced at a higher cost of borrowing. Private lenders are only interested in the building mortgage or construction loan and most of the time they will not even require that the long term take out mortgage be in place prior to the commencement of construction.

Toronto building mortgages for resale unit building will be dependent to a large extent on the pre sold units for the project. The higher the number of pre sales in place with solid contracts signed and deposits in hand, the stronger the construction financing deal the builder, developer, or property owner will be able to arrange. Certain private lenders will focus on these types of projects due to their knowledge of the market and their ability to step in and take over the project if it stalls or falls apart before completion, reducing their potential risk of loss in the process.

For commercial building mortgages, the dollar amounts are typically larger than the average residential home, so there will be a greater emphasis on the construction planning and budgeting process by the mortgage lender. Larger projects will likely have more draws and more draw administration to deal with as well. In general terms, draw management is much more cumbersome with an institutional lender than with a private lender as well.

Most building mortgages are in first or second position on the property where the building is taking place. Loan to value ratios can range from 60% to 80% on the high side depending on the strength of the individual project.

If you need a Toronto building mortgage, I recommend that you give me a call so I can assess your project needs and provide relevant construction financing options for your consideration.

Click Here To Speak With Toronto Construction Mortgage Broker Joe Walsh

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

“We Provide Toronto Builder Mortgage Financing To Local Area Builders”

A Toronto builder mortgage can be arranged from both private mortgage and institutional lending sources depending on the specific construction project, the financial profile of the borrower, and the borrower’s financing requirements.

Builder mortgages for construction projections are very dependent on the exit strategy for the property or units to be sold upon completion of the work. The best exit strategy is to have pre sales in hand that are executed under solid agreements and have paid deposits paid into trust to support the commitment of the buyer.

Construction projects built on speculation of resale can also be funded, but there may be more financial backing required from the borrower to secure the desired funds.

A Toronto builder mortgage from a private lending source is going to be priced higher than an institutional lender, but will also get approved in a shorter period of time with a lot less application support documentation. To secure an institutional builder loan, the applicant is going to have to either have the time to go through the application process from scratch, or have a pre standing relationship with an institutional lender or bank where performance has been shown on past projects.

With construction financing from bank or private mortgage sources on projects with multiple resale units being created, there will be a pre defined builder loan pay down schedule on the sale of each unit in order for the lender to be comfortable providing the necessary security discharge that that buyer will require in order to acquire a clear title.

The amount of funds required to pay down the mortgage for each sale will vary from lender to lender and project to project to some degree, but for the most part, institutional lenders will require higher pay downs for security discharge than private mortgage lenders.

One of the ways to get the best builder mortgage deal is to work with a construction mortgage broker who has access to both institutional and private mortgage construction funds.

If you’re a builder or developer working in the Greater Toronto Area and require a Toronto builder mortgage, I suggest that you give me a call so we can go over your requirements together and then review different builder mortgage options that are available to you in the market place.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

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