“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.

“We Provide Land Development Mortgage Loan Financing in Toronto And Other Parts of Southwestern Ontario”

Depending on the property and development project, there can be considerable variability in land development mortgage financing in terms of the lenders interested in a given project, and the rates and terms you can hope to secure.

When financing land development costs, the first things the construction mortgage lender will consider is the current market value of the property, the activity level of the surrounding market for similar development, and the projected market value that can be expected once the proposed work is completed.

For a bare land property with nothing developed in its immediate vicinity, the loan to property value ratio is going to be lower than a similar bare land property that is surrounded by in process or completed commercial or residential construction projects.

For bank or institutional lenders, the property value has to be matched with a strong repayment assessment from outside sources as the property under development will not be able to cash flow monthly debt service requirements.

For private mortgage lenders, the focus is more on the before and after value of the land and expected time to market the property in the event of foreclosure.

For larger projects where completed work will be sold as one unit or many, pre sales of the end product can further add to the amount of land development financing that can be secured.

Also important to all commercial lenders will be the exit strategy that is planned to repay the development financing loan when the work is completed. In many cases, this could be done through a refinancing action that will provide incremental funds for the next stage of the project, through an equity injection potentially from new investors in the project, or through the sale of lots to other builders or developers that are looking to purchase prepared sites.

Because there can be considerable differences in what can be secured for land development financing from one source to another, your best approach would be to work with a construction mortgage broker that has access to both bank and private mortgage providers in your area. That way you will have all your options covered and can quickly focus on the most relevant mortgage lenders for your land development mortgage financing requirements.

Click Here To Speak With Toronto Construction Mortgage Broker Joe Walsh

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