Commercial Land Lending
“Here’s How To Locate And Secure Commercial Land Lending in The Greater Toronto and Surrounding Area”
Toronto commercial land lending can fall under a number of categories. There can be the acquisition of bare land for development or speculation; land with existing buildings that are going to be removed for new construction, or land that has already had some site development that is being provided in a semi prepared state for sale to other builders or developers.
In all cases, the objective is to secure commercial land, or land that is zoned for a commercial use now or in the future.
One of the key factors in any Toronto commercial land lending is the prior use of the property. Previous commercial or industrial use could have created environmental liability that will need to be understood through third party environmental assessments before a mortgage lender of virtually and type will consider issuing a commitment to finance. The less previous use that could generate environmental contamination, the more likely that commercial land lending can be perfected.
Another key factor for Toronto commercial land lending is the local market where the property resides. The market value and ongoing market activity for related properties in the area will have a direct impact on lender interest, mortgage rates, and mortgage loan to property value ratios.
Both of these factors will be considered together to determine commercial lending interest. For instance, a bare land property that was previously used for agricultural purposes will likely have no environmental liability concerns, but if the property is not located in or immediately adjacent to an active commercial development, the market resale value for the commercial land will not likely be very strong.
Both institutional and private mortgage lenders can provide commercial land lending to their clients. For bank or institutional mortgage lenders, there will be more of a focus on where the source of loan repayment is going to be coming from. For non bank mortgage lenders, there will be a greater focus on the exit strategy to pay back the mortgage at the end of the interest term.
Toronto commercial land lending mortgages can range from 50% of the appraised market value to as high as 75%, depending on the property and its market area location.
If you require a commercial land lending facility in or around the Greater Toronto Area, please give me a call so I can quickly assess your situation and provide relevant commercial land lending options for your consideration.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel