Recently, we were able to provide funding for two mortgages for one of our real estate investor clients. As a full-time investor, our client was facing challenges with debt servicing and liquidity, which was hindering their ability to take advantage of opportunities in the current market.
To help our client continue to build their portfolio, we placed a $2M readvanceable loan on their primary residence. This freed up equity to support the next acquisition and renovation. The readvanceable feature of the loan allowed our client to save significant costs by only paying interest when the facility is being used. Additionally, we pre-approved our client for acquisition capital, ensuring that only a portion of the loan was used for acquisition, leaving the majority available for renovation.
Creative solutions like this are crucial in the real estate market, where accessibility to capital plays a major role in supporting the creation of wealth. With the current market offering opportunities with undervalued assets, it's more important than ever to have access to the right funding.