Financing a More than Reasonable Project

When this builder client came to Foremost Financial for a $1.5 million land purchase loan for a property on Ellesmere Road, the Foremost team was convinced the project would be profitable.

When this builder client came to Foremost Financial for a $1.5 million land purchase loan for a property on Ellesmere Road, the Foremost team (based on over 25 years financing infill projects in the GTA) was convinced the project would be profitable. 

“We could see that their initial plan to build five upscale homes on a site where there was currently an existing dilapidated home, would generate a reasonable return,” recalls Foremost vice president Paul Rayment. “But when we learned of the builder’s goal of swapping land with the owner of the neighboring property in order to have enough land to build a sixth home, all of a sudden this had the potential for a great deal for our client.”

After conferring with the builder’s planner on the viability of the property swap, Foremost fast-tracked approval for the land purchase, which included an interest reserve in the loan facility, so the borrower didn’t have to service the loan while fulfilling conditions of the severance.

Although the builder is still working with the city to meet conditions of severance to go from building five to six homes, Rayment says “we’re impressed by how our client is moving things along.” So much so that pending severance approval, Foremost is now in discussion with the client to a $4.8 million construction facility. 

To inquire about working with us to provide financing to make your next project a reality please contact a member of our Lending Team at 416-488-5300

Paul Rayment * 
– Executive Vice President ext. 288  email paul@foremost-financial.com

Victor Brewda** – Vice President ext. 101  email victor@foremost-financial.com

Matt Gonsalves * – Analyst ext. 555 email matt@foremost-financial.com

Max Miller ** – Analyst ext. 240 email max@foremost-financial.com

* Broker, ** Agent

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