This category includes the following types of real estate:

• HOTELS
• BUILT-TO-SUIT
• LAND FINANCING

HOTELS

Most traditional Canadian Lenders either provide mortgage financing on hotels on a very selective basis or not at all. The reason most often cited is that hotels are a "business", not a real estate investment. Foreign Lenders are more open minded about hotel financing, particularly Lenders from the United States. The most important attributes of a hotel from a lending perspective are (i) consistent operating profits during the previous 2-3 years, and (ii) a well known flag (i.e. Holiday Inn, Radisson, Quality Inn, etc.).

BUILT-TO-SUIT PROPERTIES

These are properties which are built for a specific user. The financibility of these properties is dependent on (i) the tenant quality, (ii) the lease rate versus market rates, (iii) the term of the lease (should be at least 7-10 years), and (iv) alternate uses for the properties (in the event of a default). If most of these attributes are favourable, very competitive mortgage financing can be achieved.

LAND FINANCING

Land financing is easiest to arrange where zoning is in place and development can occur immediately. Residential zoning is the most desirable zoning from the perspective of the lending community. The longer the time frame to development, the more difficult land financing is to obtain. This type of financing is often provided by "near banks" and private Lenders (as opposed to financial institutions).

UNDERWRITNG CRITERIA (How the loan amount is determined)

The lending parameters are outlined below:

If you would like us to analyze your property on a preliminary basis (free of charge) to establish the maximum mortgage amount which can be obtained:

• click here for HOTEL 
• click here for BUILT-TO-SUIT

If you would like to contact us or ask questions about LAND FINANCING, then click here.