There are those that consider an Etobicoke private mortgage as more of a property loan of last resort, but there are some benefits provided by a private mortgage that cannot be delivered necessarily through a conventional mortgage.
The main benefit is a greater degree of speed and process predictability. If real estate property financing needs to be put into place in a very short period of time, a private mortgage can be the primary choice for a potential borrower. Even though the cost of financing is likely going to be higher, a cheaper interest rate from a bank mortgage is not going to do you any good if the mortgage can’t be put into place in the time you have to work with.
For a residential property, a private mortgage can be sourced, approved, and closed in two to five business days provided that everything related to the transaction is in order. With a commercial property, its likely going to take longer, but still can get done faster than a bank alternative.
Commercial property mortgage requirements from institutional lenders have also stiffened a great deal in recent years, especially when you consider all the changes to environmental law. While environmental liability is also going to be important to a private lender, many times they will not have the same third party requirements that an institutional lender will have which can not only save cost but time as well.
Even in very competitive commercial mortgage situations, borrowers may still choose a private mortgage over the bank alternative if the rates are fairly close because you add in all the costs for updated financial statements, appraisals, environmental reports, and so on, the true overall cost can become very similar.
An Etobicoke private mortgage may still be the only option for individuals with bad credit and a lack of solid historical earnings to support repayment, but it can also be the preferred option for individuals and companies that have the ability to qualify for an institutional mortgage. The choice is going to depend on the specific requirements of the borrower and the time they have to work with.
If you need an Etobicoke private mortgage, I suggest that you give me a call so I can quickly assess you situation and provide private mortgage options for your immediate consideration.
Newmarket commercial mortgage financing like everywhere else in the GTA, continues to be a work in progress with respect to understanding the dynamics of the market at any given point in time.
Since the beginning of the recession two years ago (or so), the commercial mortgage market continues to be a changing landscape with institutional lenders going and coming into the market and private lenders mostly coming in versus heading for higher ground.
The proverbial waves from recessionary impacts are still hitting the financial beaches as lenders continue to closely monitor their portfolios to see what further loss accounts they may still expect to see from borrowers that will still not make it through to the other side of the economic downturn.
The end result continues to find institutional lenders being more selective in the deals they take on, taking more time to evaluate and fund each deal as well, and private lenders entering the fray in record numbers as the quality of the private mortgage deals available increase.
For the Newmarket commercial mortgage options, nothing has really changed in terms of what’s available to a given business or borrower. The big challenge right now is trying to determine which lender is going to 1) be able to fund your requirements today; and 2) is the best fit for your business requirements.
One thing is clear however is that you need to start the process of finding the right commercial property loan sooner and if time is at all a factor, then private mortgage funding options may need to be considered over institutional in order to meet your deadlines, whether they be self imposed or forced upon you. Bank or institutional deals are taking longer to complete on average than the pre recessionary period and both the timing of completion and outcome can be very difficult to predict.
One of the best ways to get a Newmarket commercial mortgage in place is to work with an experienced commercial mortgage broker who can help you get working with the most relevant lenders right away, saving both time and money in the process.
If you need a Newmarket commercial mortgage, I recommend that you give me a call so we can go over your requirements together and discuss different commercial mortgage options available in the market place today.
In order to secure a Dundas commercial mortgage, the real estate property being financed needs to be properly matched up with a commercial property lender that will be interested in the property and has the lending programs to meet the needs of the business borrower.
The first step in the process for the property owner to develop a solid understanding of what will be available to them in the market place in relationship to their expectations. Sometimes the borrower expectations do not match up with the market which can result in a lot of time wasted chasing money that doesn’t exist or is unlikely to exist or become available in the time you have to work with.
The second step is to focus in on commercial property lenders that are not only interested in the specific property type and application, but have the programs and mortgage options that are most congruent with what the property owner is looking for. For instance, if a fast mortgage closing is required on a commercial property where a mortgage needs to be in place in a matter of days, then a private lender is going to be more relevant in that situation than an institutional lender due to the time its going to take to get a bank mortgage in place.
The third step is to make sure that the application package to put forward to a targeted lender will proactively answer most of their questions so that the application process and progress as fast as possible towards a positive result. Too often the property owner only wants to provide all the pluses of the property at the outset with the thinking that once a lender is interested then the rest of the information can be disclosed and explained if necessary. The challenge with this way of thinking is that with an incomplete application that looks positive on the surface, most lenders will be interested and will want to learn more. While this may sound appealing on the surface, it actually become a big time waster as one by one the lenders will fall off as more complete information is provided. If you’re focusing in on the right lender targets in the first place, then solid and complete information is going to get a positive result faster than trying to only start with the positive attributes of the application.
If you need a dundas commercial mortgage, I suggest that you give me a call so I can quickly review your requirements and provide relevant commercial mortgage financing options for your consideration.
We provide Stoney Creek private mortgage financing solutions from our private mortgage lending sources that service Stoney Creek and the surrounding area.
A private real estate mortgage can be secured against both residential and commercial property. Typically, residential private mortgages are provided in a second position to consolidate debt or to provide funds for an immediate requirement. While most commercial private mortgages are in second position as well, there is a higher percentage of commercial private mortgages that get placed in a first position.
This is because there are many different types of institutional or quasi institutional residential mortgage financing programs that can provide first mortgage financing for poor credit scenarios provided the borrowers have cash flow to support the lending decision. With commercial property, this institutional sub prime market is much smaller, providing more of an opportunity for private mortgage lenders to fund first mortgage positions on commercial property.
As a tool, private mortgages are utilized to perfect the fast close mortgage where time is tight to complete a real estate transaction. If everything is in order, a private mortgage loan can be closed in two to five business days, effectively providing a source of bridge financing to complete the purchase of real estate and provide the borrower with time to either flip the property or locate and secure a long term commercial mortgage option at the rates and terms they’re looking for.
The biggest challenge with locating and securing the right private mortgage for your needs is finding the right private lenders. Most private mortgage lenders do not directly market their available funds and instead choose to go through individual mortgage brokers or part of the mortgage broker network to access the market. So for a Stoney Creek private mortgage, one of the keys to success is to work with an experienced private mortgage broker who has access to private funding sources that fund your type of deal in the local market. Private lenders can be very regional and also be focused on certain types of properties and amounts. So its important to only working with those sources of private funding that can best address your needs.
If you’re looking for a Stoney Creek private mortgage, I suggest that you give me a call so I can quickly assess your requirements and provide private mortgage funding options for your immediate consideration.
A Dundas private mortgage can be arranged for a number of different purposes including property purchase, debt consolidation, mortgage refinance, construction financing, and bridge loans.
For debt consolidation, private mortgages are usually placed in a second position to an existing mortgage that may be larger in size and/or has good interest rate that the borrower does not want to loose out on.
Second position mortgages are more costly than something in a first position, but compared to the interest rates that are potentially being eliminated through debt consolidation, the additional cost will likely pale in comparison to the 20% interest rates that can be incurred from some credit card balances.
A Dundas private mortgage utilized for a real estate purchase is typically required because of the short time that’s left to the purchaser to arrange financing. The private mortgage financing will effectively be a bridge loan for either a short term resale, or a bridge that buys time for longer term mortgage funding to be arranged.
Private mortgages can provide fast mortgage closings with fast being anything between two to five days of application. Speed will always depend on the property, location, and amount to be financed. Be in general terms, a private mortgage can be put into place faster than an institutional mortgage for either commercial or residential property.
With some commercial and industrial properties, especially those with environmental issues or concerns, private mortgage financing may be the only available option to the property owner or purchaser.
Like most commercial property loans, a private mortgage on commercial real estate will run from 50% to 70% loan to value, depending on the specific property and its location.
Private loans on real estate, also referred to as hard money, can be hard to find at times as most private lenders do not have their own marketing or retail presence in the market place and instead prefer to work through individual mortgage brokers or part of the mortgage broker network at large.
Private money also tends to be very regional in nature as many private lenders will only lend money in areas where they understand the market and typically reside in it or close to it.
The best way to access a Dundas private mortgage is to work directly with a private mortgage broker that places private property loans in the Dundas and the surrounding area.
Toronto multi residential mortgage financing is effectively a commercial property mortgage for any residential development with more than 4 units.
Because this falls into the realm of commercial property financing, there is a significant increase in the amount of information the relevant mortgage lenders are going to require to assess an application for financing.
Typically, residential mortgage financing has a much more straightforward process due to the lower mortgage funding being requested in most situations and the greater ease of assessing real estate value and resale ability on smaller property holdings.
With commercial property financing, there is potentially a higher level of risk to the mortgage lender, so to get comfortable with any particular financing application, a commercial lender is going to get into more detail with respect to any potential risk to both the borrowers ability to repay the requested mortgage and to the value of the security over time.
A Toronto Multi Residential mortgage from an institutional lender will require a commercial property appraisal from an AACI appraiser, a recently completed environmental assessment report from an acceptable environmental consulting firm, last three years completed financial statements for the owning entity, an updated rent roll, and so on.
Commercial mortgage financing is available for both multi res acquisitions as well as the refinancing of existing commercial property mortgages.
Because of the more rigorous requirements from bank or institutional mortgage lenders for this type of real estate property lending, private mortgage financing can also be an option for situations where not all the mortgage terms and conditions of a primary or secondary bank can’t be met.
Private mortgages are typically short term in nature due to their higher cost of financing. That being said, there are private mortgage lenders that will stay invested in a commercial mortgage for 5 to 10 years.
For situations where a faster closing or quick refinancing is required, a private loan option may be the best available option. And even with a higher cost of borrowing, if the private funding source saves a purchase from falling through or avoids certain other costs from incurring to the property owner, then the additional interest costs may quickly become trivial in the big scheme of things.
If you require a Toronto multi residential mortgage, I suggest that you give me a call so we can go over your situation in detail and discuss relevant commercial mortgage financing options that are available to you in the market.
Niagara commercial mortgages can be arranged for industrial, mixed use, multi residential over 5 units, commercial, and rental property types.
Properties like multi residential, rental, retirement homes, and licensed care facilities can qualify for an insured mortgage under the Canada Mortgage and Housing Corporation (CMHC) programs. Maximum loan to value on these types of properties from institutional lenders can only be realized through an insured mortgage program.
Bank or institutional lenders will typically require an AACI appraisal, a recently completed environmental report, and the last three years of historical financial statements along with a rent roll if the property is rented out.
Commercial mortgages through private mortgage lenders are becoming more common in active market areas where borrowers may not have the time or the ability to fully qualify for institutional mortgage rates.
The major challenge with locating and securing a Niagara commercial mortgage for any given project is lining up with the right lender and commercial property financing program that best suits your requirements at a given point in time.
This task is easier said than done for a number of reasons. First, commercial mortgage lenders all tend to have their own areas of interest with respect to commercial property with certain properties getting more serious consideration than others. This can be difficult to impossible to tell when looking in from the street at virtually any mortgage lender.
Second, the commercial mortgage portfolio of any given lender is constantly changing causing lenders to continually change their interest levels in different properties in order to maintain the balance they seek in their portfolio across property types.
Third, the detailed commercial mortgage requirements for certain programs may not be apparent until after considerable time and cost have been expended in the application process.
These are just some of the reasons why it makes sense to work with an experienced commercial broker that has the market knowledge, lender relationships, and mortgage expertise to get you working with the most relevant lenders sooner than later.
If you require a Niagara Falls commercial mortgage, please give me a call so we can discuss your requirements as well as potential commercial property financing solutions that will fit with what you’re trying to accomplish. Regardless if your need is for purchase financing, mortgage refinance, debt consolidation, or construction, I recommend you give me a call.
St. Catharines commercial mortgage financing from an institutional source will have a strong cash flow requirement to support mortgage repayment. The most basic requirement of cheaper forms of money is the presence of historically proven and documented cash flow. While the underlying security value is also going to be important, cash flow is the key ingredient necessary for any bank or conventional commercial property loan.
Private mortgage lenders, while also concerned with cash flow, are going to have their primary focus on the market value and marketability of the real estate. Private lenders are most concerned with the exit strategy in place to pay them out at the end of the loan or commercial loan term.
While cash flow and security are by far and away the major criteria for commercial lenders, there can be a host of other factors that can weigh into a a particular application for mortgage financing for a commercial property.
Because commercial real estate covers such a broad category of property types, most commercial mortgages end up being a customized financing application with the mortgage lender trying to fit the subject property into their specific lending box which tends to be very rigid and inflexible.
St. Catharine commercial property lenders will also have a varying interest in property types over time as the work to manage risk in their overall portfolio. Too much concentration in any one industry or property type in a location will likely see the specific lender show less interest in a property they may have been eager to finance months earlier.
With all the different types of lenders in the Ontario market, each with their own commercial mortgage financing programs and shifting requirements, it can be rather difficult for a business owner or property owner to figure out what commercial mortgage lender will be interested in financing their requirements and who will potentially provide the best available deal at a given point in time.
One of the best ways to successfully navigate the market is by utilizing the services of an experienced commercial mortgage broker who stays on top of changes in the market and individual lender financing practices.
If you need a St. Catharines commercial mortgage, please give me a call so we can go over your situation together and discuss relevant commercial property financing options that can meet your requirements.
A Toronto home building loan can be secured for a wide variety of construction applications, the most common being a single family dwelling.
With single family homes, building loans are typically either for a self build project or for construction where the builder or developer is the borrower.
In a self build situation, the property owner has the intent to construct a dwelling and live in it after completion. The property owner can be the direct builder themselves but in most cases serve as the general contractor or director of their own project, hiring out the actual work to building professionals.
With a builder loan, the builder is the actual property owner and requires construction financing to complete a project for the purposes of resale. The house to be construction may be presold or to be built for future resale.
The main difference between the two for construction mortgage financing purposes is that self builds typically don’t require enrollment in a home insurance program where professional builders building for resale do.
A Toronto home building loan is available through both bank and private mortgage lending sources. Bank sources are always more focused on credit profile and repayment ability while private mortgage lenders are more interested in the post construction value of the property and the exit strategy to repay the construction loan.
Toronto home building loans from banks will typically require that both the construction loan and post construction take out or long term permanent mortgage are both in place prior to the commencement of construction. Basically, if you can’t qualify for both the construction loan and the long term mortgage at the same time, you will not be getting a home building loan from a bank as the only reason they provide construction financing in the first place is to access the preferred longer term mortgage security. Because many people cannot meet the banking criteria or don’t want to be constricted to the bank’s long term mortgage options, private mortgages are a very popular form of home building loan.
If you require a Toronto home building loan either as a property owner or a professional home builder, I suggest that you give me a call so I can quickly assess your requirements and provide you with relevant construction financing options for your consideration.
Construction to permanent loan options will vary depending on the type of construction loan you start with.
For instance, if you want to acquire a bank or institutional construction loan or mortgage, the bank will likely have a requirement that you also qualify for the take out or permanent loan at the same time. This is because the only reason that an institutional lender will provide a construction loan for home construction in the first place is to get access to the long term permanent mortgage that will be required at the end of the construction period.
So with an institutional construction loan, the permanent loan to take out the construction financing at the end of the project will be predefined and determined at the commencement of construction.
With private mortgage construction loan, the private lender may or may not require that the take out mortgage be arranged before the start of construction. In most cases, this is not a requirement.
As a result, you have considerably more time to shop around in the market for the best potential deal before the end of the construction period when the take out or permanent loan will be required.
The private mortgage route allows you to align yourself with any long term permanent loan program you desire with no restrictions as to the lenders you can consider.
With the institutional construction loan, you will be limited in choice and selection to the permanent loan pay out options that particular bank has available including the rates and terms that they offer.
At the end of the construction project, the costs registered against the property are paid out by the new permanent loan. This can involve several mortgages, especially if a mortgage was in place before the construction loan was acquired.
The payout of the property mortgages will take place once the construction project is certified as complete by the building inspector and the lien hold period has passed.
The best way to arrange financing for the construction to permanent loan process is to work with an experienced construction mortgage broker who can guide you through the different programs that will best suit your requirements and financing criteria.
If you advise on construction to permanent loan financing, I suggest that you give me a call so I can quickly assess your situation and provide relevant permanent loan financing options for your consideration.
Whitby commercial mortgages are available for a many different real estate financing applications that can range according to the type of property, the credit profile of the business and business owners, as well as the use of funds.
Similar to residential mortgages, commercial property financing can be used to purchase a commercial real estate property, refinance an existing mortgage, consolidate outstanding debts that may or may not be directly related to the property, finance a construction project.
Each application for commercial property financing can have more preferred lending options as well as each lender will have their own particular interest and expertise in the local commercial real estate market.
This extends also to different credit profiles where there will be different levels of lender interest from major banks through to secondary banks and institutional lenders and on down the line to private mortgage lenders.
Commercial mortgage lending at an institutional banking level is more about cash flow than security. The stronger the cash flow available for debt service, the better the changes are that the deal will be able to attract cheaper forms of funding. Tighter cash flow will also lend to few institutional financing options and may lend more to private mortgage financing/
For private mortgages on commercial property, cash flow will still have its importance to the lender, but because most private mortgages are interest only during the loan term, the debt servicing requirement can actually be less even at a higher interest rate.
Whitby commercial mortgages from private lenders are likely going to come from more localized sources verses the regional and national sources that exist for different institutional mortgage lenders.
With all the options that exist, you should always consider using the services of an experienced commercial broker to help you identify the most relevant financing options available for your requirements and then assist in the application process to get the deal closed in the time you have to work with. The commercial property lending market can be hard to navigate for even the most experienced business owners so getting some professional help is definitely something to you should consider.
If you’re in need of a Whitby commercial mortgage, please give me a call so we can go over your financing requirements together and review commercial property financing options that will meet your needs.
Concord private mortgage financing typically comes from either an individual private lender, a syndication of private lenders, or a mortgage investment corporation that places the funds of its shareholders and investors.
While many people only associate private mortgage financing with the term hard money, there continues to be growing use for this type of real estate property loan in a number of different applications.
And yes, there still is a large slice of the private mortgage lending market that is devoted to providing small first or second mortgages on residential properties for those borrowers or applicants with bad credit.
But as banks and other institutions continue to take a more conservative approach post 2008 to 2010 recession, there are more and more applications for private funding that would have traditionally been filled by the banks.
A continually growing segment of private mortgage financing is in the area of construction loans. Because of the speed in which financing can be arranged, the more predictable draw schedules, and the lack of a requirement in most cases to have a take out mortgage arranged at the beginning of construction, private mortgages have grown in popularity with builders, developers, and property owners.
For real estate speculators who are trying to close quickly on a deal that won’t last long on the market, private mortgage loans can provide the necessary funds in the time required to close the deal. Even with the additional costs, many purchases are more than willing to pay more in order to not lose out on the profit potential of their purchase.
Commercial properties can also be financed via private mortgages with the majority of these types of real estate property loans being no higher than $2,000,000 in the majority of cases.
That being said, Concord private mortgage financing can be arranged for much larger amounts through lender syndication or mortgage investment corporations.
The key to any private mortgage from the lender’s point of view is the exit strategy that is provided to state how the mortgage will be repaid when in matures which is typically in one or two years.
If you are in need of a Concord private mortgage, I suggest that you give me a call so I can quickly assess your options and provide relevant private mortgage financing options for your consideration.
Richmond Hill commercial mortgage financing options are provided to our customers for a number of different types of residential and commercial real estate property requirements.
Commercial property mortgages, like residential mortgages, can be secured for a number of purposes and applications including real estate purchase, mortgage refinancing, debt consolidation, and construction financing.
The key difference between commercial mortgage financing and residential mortgage financing is that the qualifying process tends to be much more involved, requiring considerable more third party verification than what you will find on a residential mortgage application.
The fundamental elements for mortgage financing are always going to be the same for residential and commercial (assessments of repayment ability, security value, and strength of the borrower’s guarantee). But for business financing, each area can involve considerably more review due to the higher risk associated with a commercial mortgage loan.
For Richmond Hill commercial mortgage financing, there are also going to be variations from lender to lender in terms of commercial property financing interests and mortgage financing criteria. There is also a broad spectrum of lenders from the low credit risk perspective at major banks to the higher credit risk considerations of private lenders.
That being said, commercial private mortgages can be the best fit for even an “A” credit profile, depending on the circumstances of the funding requirements. As an example, fast close mortgages or other bridge financing situations can be best suited for private mortgage financing options. Construction mortgage financing is also popular for commercial construction projects due to the speed in which financing can be put into place and the more straight forward and predictable draw management process.
The main point there is that there can be many Richmond Hill commercial mortgage options to choose from and it can be difficult to determine at times which one is the best fit for your requirements in the time you have to work with.
This is why it can be very beneficial to work with an experienced commercial mortgage broker who maintains a good understanding of the market, has access to both institutional and private mortgage funding sources, and has a track record for getting deal funded.
If you need to get a Richmond Hill commercial mortgage in place for your business, please give me a call so we can go over you financing requirements together and review relevant commercial mortgage financing options.
Barrie private mortgages can come from either an individual private lender or a mortgage investment corporation of some sort that places the funds provided to them by their investors.
The main difference between the two type of private lenders is that the mortgage investment corporations actively retail their services to the public where the individual private mortgage lender tends to access the market through a single broker or the mortgage broker network.
Mortgage investment corps also tend to be more structured in their approach to mortgage financing while many individual private lenders make lending decisions on a more subjective and fluid basis from deal to deal.
Barrie private mortgages are most commonly placed for residential second mortgages, construction loans, and small commercial property financing applications under $2,000,000. That being said, private mortgage financing can be secured for much larger projects either on an individual lender basis or through some type of lender syndicate or partnership.
Most private mortgages come with a one year interest term where the mortgage is required to be repaid at the end of the term. If the mortgage is renewed for an additional term, there will likely be a renewal fee required. At the same time, it is possible in some situations to get private mortgage financing for longer periods and even to have amortized repayment as most private mortgage loans are interest only.
The main key to being able to locate and secure the private mortgage funding you require is to work with an experienced mortgage broker that actively funds similar deals in Barrie area or immediately surrounding area as private money tends to have geographic restrictions. Mortgage brokers with direct access to private lenders will also be more effective in delivering the results you’re looking for as indirect access through one or more additional brokers can not only take up additional time that you may not have, but could also end up putting the deal in front of a lender that is not a good fit for your requirements.
If you’re trying to locate and secure Barrie private mortgages, I suggest that you give me a call so I can quickly assess your requirements and provide relevant private mortgage financing options for your immediate consideration.
Ancaster commercial mortgage options are supplied to our clients for a number of different applications from a number of different potential lending sources.
What’s interesting about commercial property financing is the extremely broad range of property types that fall into the application. Basically anything that is outside of a residential property less than 5 units is going to be classified as commercial property for mortgage financing purposes.
And because of this very broad definition, each mortgage lender is going to have their own interest in different areas of the market. What’s difficult for prospective borrowers is not being able to tell from the outside looking in, which commercial property lenders are best suited to a particular mortgage financing opportunity at any given point in time.
The point in time aspect is very important as each commercial lender will be managing an investment portfolio of mortgages and they will each have certain rules in terms of the concentration they want to have with any specific type of property and/or industry. So their interest in any particular commercial real estate property will depend on where they are with their portfolio at any given period of time. This also means that just because you were able to secure a mortgage from a specific lender in the past for a certain application provides no guarantee that the same lender will be able to replicate the feat at a certain point in the future.
The market is further divided by risk profile with the banks and institutional lenders focusing more on stronger cash flow and the private mortgage lenders or asset based lenders focusing more on the value of the security being offered and the exit strategy required to pay them out in the future.
In order to navigate this ever changing market and be successful locating and securing an Ancaster commercial mortgage, you need to consider working with an experienced mortgage broker that stay in contact with the market place and has the ability to help you quickly focus in on the most relevant options and help you avoid wasting time going in the wrong direction which is very easy to do these days.
If you’d like to better understand your Ancaster commercial mortgage options, I suggest that you give me a call so we can go over your requirements together and discuss commercial mortgage financing programs that can meet your needs.