While many institutional lenders turn a blind eye to financing smaller infill construction projects, Foremost Financial has a keen eye for such projects, which comes from over 20 years spent financing builders most likely to succeed.
“We look at such things as how desirable the neighborhood is, current market demand for that area, purchaser value adds such as value compared to nearby homes, and whether the builder stands to make a decent profit,” observes Foremost Financial executive vice-president Paul Rayment.
This particular three-home project in the GTA’s east end stood out from the pack for several reasons, including the fact the builder – originally from Bangladesh, has carved out a strong reputation for constructing quality homes; and with this particular project, at a selling price below the cost of comparable nearby homes.
Foremost has provided the builder client with a $2,2140,000 loan to finance the purchase of the 75 x 105 ft. site and cover development charges, city fees, hard construction costs, and servicing interest throughout construction. And thanks to Foremost’s construction financing, the builder can assure purchasers the project will be built within budget and in a timely fashion (an estimated 10-month build).
“This is a prime example of project financing where everyone wins,” says Rayment. “Home purchasers get a great price, quality workmanship, and occupancy within a reasonable timeframe. The builder gets the construction financing they need. And we continue to provide reliable support and financing for dependable builders, which sets the stage for talking about their next project.”
To inquire about working with us to provide financing to make your next project a reality please contact a member of our Lending Team
Executive Vice President ext. 288
Vice President ext. 101
Analyst ext. 555
Analyst ext. 240
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