Two types of construction financing are discussed:
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 Residential
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Commercial
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Residential Construction Financing:
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A residential developer needs to decide whether he/she would prefer CMHC-insured or conventional financing.
CMHC has similar presale requirements and offers superior pricing versus the conventional lender. CMHC is also active in insuring construction financing on new apartment rental developments in Ontario. Canadian Mortgage Capital Corporation has "approved lender" status with CMHC. For more information on CMHC, please click here.
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Commercial Construction Financing:
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The most important criteria are:
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quality of the development
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location of the development
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level and quality of preleasing achieved to date
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track record of the developer
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Construction financing for commercial properties is most readily available in larger urban centres, although high quality preleasing in smaller centres can overcome this hurdle. Construction lenders generally focus closely on the track record and financial strength of the developer because of the perceived risk of this type of financing versus traditional mortgage financing.
CMCC has arranged many large and complicated construction loans.
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Financing Terms Available:
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Loan Amount
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we will work with you to prepare construction budgets and structure the financing to maximize the loan amount.
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Interest Rates
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since we are active in this type of financing, we are very aware of the types of interest rates which are negotiable.
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Term
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12 to 36 months, based on a conservative development horizon.
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Recourse
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construction loans generally require some level of recourse (guarantees). We will attempt to minimize the level of guarantee.
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