“Mortgages For Non Residence Of Canada Have Certain Process Requirements For Completion”

Mortgages for non residence of Canada can be arranged through a wide variety of Canadian mortgage lenders, which is good news for non residence that are looking to finance a Canadian real estate property.

And the rates and terms that can be secured can also be very attractive. The only major financial requirement is that the down payment or equity in the property is between 35% and 50%. Credit and cash flow for repayment will enter into the equation for better rates and terms, but the most important funding requirements is going to revolve around the equity.

So from an application and approval point of view, the process can be fairly straightforward to complete.

What can be more challenging is getting the mortgage agreement completed and the funds disbursed.

Canadian lenders will only be working in Canadian funds and the payments made will need to flow through a Canadian bank account.

So a non resident would have to set up banking in order for the cash flow requirements of the loan or mortgage to be met.

In addition, most if not all lenders in Canada that will fund mortgages for non residence will require the actual borrower to sign the mortgage documents prior to funding.

Powers of attorney for instance will not be acceptable to complete the process.

This will typically require the borrower to need to travel to Canada at the time of closing to execute all the documents in person.

Another procedural requirement can be that all correspondence related

Mortgages With Non Residence Of Canada

“Mezzanine Construction Loans Can Be a Necessary Part of The Capital Structure For Larger Sized Commercial Projects”
For larger commercial developments such as low rise or high rise residential complexes, retail and industrial condo developments, and other income earning properties, the capital structure to build, acquire, or remodel larger projects can become both difficult and complex.

One of the main difficulties with the larger projects is a lack of equity to balance off the construction financing being sought. Maximum debt financing in most cases is 75% of the project costs, so there needs to be 25% equity in place either in owner cash injection or property security value.

If the owners have a well designed and organized project that has a solid profit potential in a good real estate market area for similar structures, then mezzanine construction loans can be a great source of equity financing.

While considered as equity by the senior lender, the funds secured through a mezz funder are registered as a mortgage behind the senior lender’s position.

Mezzanine financing refers to financing that sits after senior debt and before senior equity, so while structured as a mortgage, it can still carry stock options to provide an additional equity return.

Here are some keys to being able to attract Mezzanine construction loans:

Financing requirement needs to be at least $2,000,000.
The mezzz fund portion cannot typically exceed 75% of the required equity.
The funds will need to be repaid within 2 to 5 years and there will have to be a solid exit plan to support

Mezzanine Construction Overdrafts

“A Toronto 50/50 Mortgage Can Provide The Best Of Both Worlds”

The Toronto 50/50 mortgage products provided by many lenders for a residential home mortgage can be an excellent fit for the risk appetite of certain borrowers.

Before going any further, let’s first define what a 50/50 mortgage is.

While each 50/50 mortgage program can be slightly different, the basic structure of these mortgage is as follows:

The principal of the mortgage is equally divided between a fixed and variable rate ( or the mortgage program allows you to adjust the percentage).  The effective result is a blended mortgage rate that will change over time if the variable rate moves up or down.
You will be making two different payment amounts with most programs allowing you the option to increase one of the payments to fit your cash flow objectives while leaving the other one unchanged.
The variable portion can be converted to a fixed rate at any time without any penalty.
Most programs will offer a 20% prepayment option on the total mortgage outstanding without any prepayment penalties applied.

For those

Along With The 50/50 House Loan