A small home builder approached us to replace the financing that he used to construct two infill properties that are now listed for sale. The construction mortgages were interest only
payments and open for repayment at anytime without penalty. The properties are going to be listed for sale and given the amount of equity the builder has in both properties we arranged no income qualifying 1 year open mortgages that will allow him to sell the properties and repay the replacement mortgages with no penalty. The interest rates on the replacement mortgages are very competitive and the fees were less than 1.0%.
Construction financing has been hard to find over the past several years however recently lenders are coming forward to offer construction financing to strong borrower who can demonstrate real equity and personal net worth. Once construction is completed, mortgages can now be put in place with a growing list of lenders who are comfortable lending to a certain percentage of value and loan size.
If you have a construction mortgage that you would like us to review, please email dylan@bridgecap.ca or visit www.bridgecap.ca/dylan
