Cottages, Ski Chalets and other seasonal properties can be a challenge for traditional banks, for a variety of reasons that can include construction type, marketability, and access to services including water and sewage. We will work to find A, B and private lenders including construction financing to support your seasonal project Typical facilities we provide are land acquisition, construction or equity take out/purchase financing of completed properties.
Primarily known as Air BnB or VRBO, short-term rentals present a number of challenges for lenders. Banks typical require long term leases to consider rental income, which poses a challenges for those looking to do short-term lending, which can often be more profitable. Note – many new developments have restrictions on short term rentals that any purchaser should be aware of. We work with lenders who take a more holistic view of the asset and its valuation. Mortgage lending is the primary financing need.
This is a more unique and rare type of financing request, but one that Squid Mortgages knows well! Modular homes often consist of a home that is pre-built offsite and then delivered and installed on a piece of land. The benefit of this can often be speed of construction and cost savings to the buyer. The challenge is Banks don’t often have traditional products that support this type of lending. Typical financing includes lending for land acquisition and the purchase/installation of the modular home.
This is another type of financing request that is unique, and many traditional Banks do not offer. The challenges of Single Draw construction is getting your project from start to finish, where you may not have the resources to self finance to completion, and want a lump some draw. Lenders shy from this as it can be riskier to monitor the project completion. Squid Mortgages has access to solutions. This is typically a combination of an interest only loan/LOC that is then converted to a traditional mortgage on completion.
This is a growing trend in many urban centres, specifically in Ontario recently changed legislation to allow multi-unit rentals for density infill in cities. This type of financing can be complex for Banks to support given the various challenges permits and legality, and requires a lender that has experience in these projects. Typically this is a combination of short-term renovation financing and long-term mortgage financing, and is always real estate secured and will require an income-based approach often to value.
With the current interest rate environment and fluctuating real estate values, larger mortgage represent an increasing risk for the traditional Banks, but not Squid Mortgages! We’ll work with your unique situation to find a solution to your larger real estate lending needs with both traditional and non-traditional lenders. Loan to value for these loans are often scaled/reduced based on appraised values. Almost always long-term mortgage debt.
While this is can be a very common form of financing, many lenders do not like to undertake these projects given their complexity and lengthy timelines. Also, some lenders will require more detailed plans that can also include hiring a project manager at the borrower’s expense. Squid Mortgages brings a variety of options. Typical financing is a combination of short-term interest only lending during construction convertible to a traditional mortage upon completion.
Homes are expensive, saving for a down payment can be difficult, and even more challenging in these current times. There are a variety of high ratio financing options out there, that can often come with a preferred interest rate if its an insured mortgage. We work with borrowers on both traditional and non-traditional high ratio solutions. This is mortgage financing but in some cases can include a 1st and a 2nd mortgage.
Wealth based lending is unique in that it looks more at lending against acquired wealth income stream to assess borrower capability than traditional income. These are unique programs that only some lenders provides. Squid can find them for you! These programs are great for those with inconsistent income or self-employed individuals applying tax strategies to reduce income.
A type of transaction that has grown in popularity over the past years particularly in the condo market where investors have been purchasing units with the intent of reselling before closing. This can be a challenging type of lending because it is based on the ”assigned” value of the purchase/sale, not the original value, which in most cases is higher. Not all lenders will finance these. Squid knows lenders that do! These are traditional mortgages but the down payment structure can be unique and in some cases lender pre-approval is required to complete.
This program typically does not utilize the traditional “GDSR” and ”TDSR” ratios that most lenders use to qualify borrowers but takes a more holistic approach on the overall net worth and 2ndary sources of repayment for residential mortgage lending. This program can be used for both owner occupied and income properties and is very common with self-employed individuals utilizing tax strategies that reduce declared income. This is a typical residential mortgage product most often.
This is an area of financing that is popular in times of economic upheaval and falling real estate values and/or climbing interest rates that can create challenging situations like Bank foreclosures or inability to close on a transaction that creates financial and legal risks to the buyer/borrower. These “workout” situations require working with lenders that can see the bigger picture and primarily lend against the asset. These are non-typical lending solutions and can include a combination of lending products.
There are reasons to numerous to list on why a 2nd mortgage might be right for you, but the fact is they are growing in popularity today and will continue to grow as lending rules tighten and Banks retreat in times of economic uncertainty. One of the most popular uses is when there is a shortfall of funds to close on a transaction. This is where both 2nd mortgages and private mortgages can assist. These are most often real estate secured and can often have a shorter term/amortization and higher interest rates.
Most lenders will only entertain real estate transactions done on the MLS marketplace where they purchase/sale has gone through a competitive sale process in the marketplace. Sometimes however, buyers and sellers will arrange to do a private sale, for a variety of reasons, and these can also be non-arms lengths (selling within the family as an example). Squid Mortgages can assist in your unique situation. These are typical mortgages but they can be from a variety of lender types depending on the situation.
