Financing services
Expert Development Financing
Secure Financing from $15M to $600M for Your Development Project
Understanding Development Loans
Development loans are essential for transforming raw land into fully developed residential subdivisions, commercial properties, or mixed-use condominiums. These loans not only cover the purchase of raw land but also fund critical improvements such as land leveling, road construction, and the installation of water lines.
At every stage of your project—from land acquisition and site planning to vertical construction and beyond—development loans provide the financial support needed to ensure your vision becomes a reality. Additionally, construction bridge loans are available to address any cash flow challenges that may arise during the building process, ensuring your project stays on track and is completed successfully.
It is noteworthy that you ensure sufficient funding is available to you for the successful completion of the projects stated below :
Residential
Subdivisions
Commercial
Buildings
Mixed Use
Condominiums
Retirement
Facility
Condominium
Conversions
Why Choose TM Lending for Your Development Loan?
TM Lending offers comprehensive development financing expertise, supporting all project stages from land acquisition to construction. They provide flexible loan options, including construction bridge loans, tailored to your project’s needs. With personalized consultations, competitive interest rates, and flexible payment terms, TM Lending ensures your project’s financial success. Serving multiple cities in Ontario, their local expertise and dedicated support make us a reliable partner for your development financing needs.
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Types of Development Financing
Financing for Residential Development
Residential development involves everything from acquiring land to planning, designing, and constructing homes. This process also includes securing permits and ensuring compliance with local regulations. TM Lending provides tailored residential development loans to help you build functional, appealing, and sustainable living spaces.
Financing for Condominium Development Projects
Condominium development involves planning, constructing, and selling condominium units within a shared property. This process includes acquiring suitable land, designing residential units with shared amenities, obtaining necessary permits, and ensuring compliance with local regulations. This type of development focuses on creating multi-unit residential buildings that provide community living with private ownership of individual units.
Who Can Qualify for a Development Loan?
To qualify for a development loan with TM Lending, you’ll need:
Strong Financial and Credit Background
A good credit score (typically 680+), stable income, and a low debt-to-income ratio.
Significant Down Payment
A down payment of 20% to 30% of the total project cost is usually required.
Comprehensive Development Plan
A detailed plan including designs, timelines, budgets, and contractor agreements is essential.
Experience and Proven Track Record
Prior experience in real estate development enhances eligibility.
Compliance and Feasibility
The property must meet zoning laws and environmental regulations, and the project should show clear profitability and feasibility.
FAQ
A loan for development can be used to construct a new structure or to improve an existing property.
Yes, the financing is secured by the value of the property
No, most lenders allow the interest to be accumulated over the duration of the loan.
You are only charged interest for the amount of time you take out the loan.
In Ontario, the average interest rate for development financing is typically 7.25%, though this can vary depending on the size of the loan. Smaller loans tend to have higher interest rates than larger ones due to the lack of economy of scale.