Interest Only Bridge Financing
“Toronto Interest Only Bridge Financing Is Available For A Number of Different Applications”
If you need interest only bridge financing in Toronto, or anywhere else in southwestern Ontario, I suggest you give us a call right away at 416 464 4113 and we’ll be able to tell you right away if we can help you or not.
Toronto Bridge financing is typically required when a real estate transactions needs to close quickly and there is not enough time or collateral in the deal to get it done through a conventional lending source.
One of the more common applications for a bridge loan is the buy and sell property scenario where a real estate investor is planning to purchase a property right away and then resell it shortly there after for a profit.
Because the opportunity may only exist for a very short period of time, there likely will not be the opportunity or the need to get a conventional mortgage.
Typically these types of transactions are financed partially by a private mortgage loan against the property being purchased or a combination of the property being purchased and other properties pledged for security. The private mortgage can be in first or second position, provided that there is sufficient equity available to support the financing requirement.
Interest only bridge financing is accomplished through the private mortgage loan as most privates only require interest only payments. Depending on the private mortgage lender, the interest term will typically be for one year with repayment penalties ranging from completely open to three months interest penalty.
The main benefit of this type of bridge financing mortgage is that it can be put into place quickly, provided everything is in order with respect to property appraisals, purchase and sale agreements, down payments, etc.
And as long as their is sufficient paid in equity into the project, private lenders are not going to be as concerned with repayment assessments, especially if the property is in a strong resale market and the plan is to re-market it as quickly as possible.
If you have this sort of need or would like to discuss different options for a transaction you’re looking at, give me a call right away and we’ll go over the scenario together.
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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