Toronto Construction Loans Heating Up
“As The Summer Goes on Toronto Construction Loans Can Be Harder To Find”
We are now into July.
Happy Canada Day!
And the construction season is in full swing. This also places a high demand on available construction financing sources, which are primarily provided through private lenders.
Different from bank or institutional construction mortgage lenders, private mortgage lenders have a finite lending pool available to them. So as more and more construction projects are committed in the market, the potential available pool of private mortgage construction funds can go down and go down significantly for a period of time.
This is not to say that there will actually be a shortage of private mortgage constructions loans in a market as large as Toronto, but the available sources may start providing less than optimal rates and terms based on supply and demand.
Like any market, when there is more supply than demand, the suppliers are going to increase the prices or strengthen the terms in their favor. And because construction financing is very regionally supplied and very project specific, the supply and demand balance can get out of wack for a period of time.
So if you’re planning a construction project for this summer that is going to require private mortgage construction financing, I would recommend that you get your construction financing arranged sooner or later to avoid any of these seasonal anomalies that can happen with the local money supply.
The best way to make sure you’re getting the best available deal is to work with a construction mortgage broker that places construction loans in your area for the size and type of project your undertaking or in the middle of. Mortgage brokers focused on construction will have a much broader access to construction loans in Toronto versus those that occasionally dabble in construction financing. If their sources run out of money for a period of time, they may end up redirecting you to less appealing options.
If you have a Toronto construction loan requirement for a project you’re planning or in the middle of, give me a call as soon as possible so I can quickly assess your requirements and see what construction financing options we can get locked in for your summer building schedule.
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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