Empower Your Condo Project with Expert Financial Support
Secure the right financing to make your condominium development project a success with our specialized services.
At TM Lending, we pride ourselves on being leaders in condominium development financing, offering unparalleled expertise in managing the complexities of condo construction loans. We understand that each project is unique and requires a tailored approach to ensure successful execution. Our team specializes in navigating the challenging landscape of condominium financing, including understanding the unique characteristics of high-rise towers, low-rise buildings, row-townhouses, four or more-story apartment-style designs, multiplex projects, and mixed-use developments. Whether you’re planning a new development or managing an ongoing project, TM Lending has the knowledge and experience to support your financial needs from start to finish.
Our process begins with a thorough assessment of the proposed condominium project and an in-depth market analysis to determine current and future market value, ensuring alignment with market demand.
After the initial assessment, we guide you through the loan application process, structuring the financing to match the specific needs and scale of your development while ensuring compliance with all relevant regulations, including the Condominium Act.
Once approved, we ensure a smooth disbursement of funds, allowing the project to proceed as planned while maintaining flexibility to accommodate any changes or unforeseen circumstances.
To ensure financial success in condominium development, it is essential to identify and mitigate risks associated with these complex projects. TM Lending provides expert financial guidance to help investors navigate these risks effectively, offering strategies that align with each project’s unique requirements. Strategic planning is crucial for maximizing profits, and our team assists in developing plans that ensure projects are completed on time and within budget.
When considering financing for your condominium development project, selecting the right partner is essential. TM Lending offers customized solutions specifically for condominium developments, along with comprehensive support for all types of development financing. If you’re interested in exploring all your financing options, visit our main Development Financing page for more details.
To qualify for a loan for a condominium development, the condo must be in compliance with the Condominium Act and the loan amount must be relatively small compared to the total value of all units in the condo.
Yes, A majority of unit owners must vote in favor for a condominium corporation to be able to borrow money
No personal financial information is required from unit owners. The loan is to the condominium corporation, and individual unit owners will not be asked to provide any financial information
Typically, commercial finance interest rates are higher than those offered for mortgages on owner-occupied residences. This is why condominium development loans have higher interest rates than those for individual mortgages. These loans are not secured by a mortgage and charge.
At the end of the term, the condo corporation has three options for loan renewal:
The interest rate for the renewal of the loan will be determined by the loan market conditions in effect at that time.
The term of the loan, which is the length of time that the interest rate is fixed for, is typically discussed between the borrower and the lender. Generally, loan terms are fixed for up to 1 year, and in some cases, up to 2 or 3 years.
A viable exit strategy could include the sale of the property, a construction take-out, or a mortgage refinancing. Upon completion of the project, the borrower can sell the property and use the proceeds to pay off the loan. Alternatively, the borrower can take out a construction loan to retire the existing land loan. Lastly, the borrower can refinance the construction loan at a lower interest rate with a bank or institutional lender if they plan to retain ownership or rent out the completed units.
