Financing Services

Development Financing
 ($15M to $600M) 

Development Financing

Development loans are used in the event that borrowers plan to develop the raw land they purchase.

Furthermore, development loans are utilized for improvements made to raw land such as leveling, building roads, as well as running water lines for the subject property. Importantly, development loans are essential to transform raw land into residential subdivisions, commercial buildings, and/or mixed-use condominiums.

Financing is obtainable at each stage of building a residential subdivision, such as acquiring raw land, site planning, site development, mixed-use condominiums (vertical construction), and construction bridge loans in the event of cash shortage during construction. It is noteworthy that you ensure sufficient funding is available to you for the successful completion of the projects stated below :

FAQs

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.