New Construction
Residential Construction Financing
A residential developer may choose 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.
Commercial Construction Financing
The most important criteria are:
- quality of the development
- location of the development
- level and quality of pre-leasing achieved to date
- track record of the developer
Construction financing for commercial properties is most readily available in larger urban centers, although high quality pre-leasing in smaller centers may 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.
To learn more about obtaining commercial mortgage financing or to book a free consultation, please contact us and speak with one of our experienced commercial mortgage specialists.
