We had the pleasure of supporting repeat clients of ours financing another cottage build in Cottage Country. We provided both land acquisition financing to purchase the property as well as the construction financing for the cottage build out.
Backstory:
Clients building a property to sell and looking for investors to raise capital. We suggested financing the build out so the owners could retain all the equity. The builders, not being aware we could finance 100% of the construction, did not consider this option at first.
Mortgage Provided:
65% Loan to Value on a purchase price of $1,500,000 which is $975,000 and a down payment of $525,000 divided between 3 builders $175,000 each.
Construction budgets: $1,500,000 (mainly hard costs), clients have cash reserves for soft costs and contingencies.
Term: 18 months term which is total time for build and pushed out from 12 month to avoid any renewal fees.
Interest Rate Reserve $200,000 to cover payments during the build
For all your construction mortgage needs be it land acquisition in Oakville, GTA or Muskoka or construction financing in Oakville, GTA or Muskoka, reach out for details!
Appraised "as is value" $1,500,000 and completed value $4,500,000
Unlimited draws