In January 2001, Canadian Mortgage Capital Corporation created a mezzanine fund designed to exploit the voids in real estate lending. This fund was borne out of frustration with the financial markets in Canada, which are oligopolistic and very conservative in nature. We saw the need for a professionally run lending operation willing to lend into neglected areas of real estate finance.

This Mezzanine Fund will operate under the name 'DB Mortgage Investment Corporation' and will lend into the following market niches:

• Residential Real Estate

  • 1st mortgages (generally at 50% Loan to Value) on residentially zoned lands in the Greater Toronto area, and
  • 2nd mortgages on apartment buildings at loan amounts up to 85% of value in major urban centers across Ontario.

• Commercial Real Estate

  • 1st and 2nd mortgages on income producing real estate, primarily in the greater Toronto area. Loans will be underwritten up to 80% loan to value.

Interest rates will range from 11.0% to 20.0% per annum. For multi-residential mortgages, the interest rate will generally be in the range of 11.0% -13.0% per annum.

The term of the mortgages will generally be 12 months, although a long term is available in appropriate circumstances.

Payments will generally be on an 'interest only' basis (no principal payments).

The maximum loan amount is $1,500,000, although larger loans can be underwritten with a lending partner.

If you have a financing need that fits these parameters, please give us a call at (416) 867-1053.