Asset classes and types of loans that we finance
Review our general lending guidelines – we tailor loans to our clients’ needs.
Multi-family Construction
Morrison Financial focus on multi-family properties including but not limited to:
- Low-rise apartments / condos
- Multi-family rentals
- Mixed-use property with retail/commercial components
- Student housing
The purpose of the loan may be for:
- New construction
- Bridge financing inventory loan
- Repositioning of existing building for rental purposes
Loan purposes:
Multi-family development projects held for sale for purposes of construction of bridge financing inventory loan (may include retail and commercial components)
Mortgage position:
1st / 2nd/ 3rd
Loan to value:
Not exceeding 85%
Pre-sales:
Required based on residual loan calculation (threshold depending on loan size); contracted deposits to not be less than 15% of sale price
Project monitor:
Required for projects with budget greater than $3.000.000
Repayment of loan:
Loan repayment either through refinancing following completion of project or through closing by way of partial discharge
Geography and liquidity:
Lander requires comfort on liquidity of the property; max LTV of loan will be adjusted accordingly
Construction advances:
Advance amount will not exceed 100% of the cost of work in place as substantiated by invoices
Home Construction & Renovation
This corresponds to either:
- Construction of single-family home from foundation to finished
- Renovation of existing single-family home
The Borrower must provide a valid exit strategy for the home, which may be:
- Spec re-sale
- Personal use
- Rent and hold strategy
Loan purposes:
Complete construction from foundation to finished home or renovation for the purposes of:
- Spec re-sale
- Personal use
- Rent and hold strategy
Mortgage position:
1st / 2nd / 3rd
Type:
Spec building / Owner occupied
Loan to value:
Renovation: not exceeding 85%
Construction: not exceeding 80%
Additional considerations for LTV calculations:
- Capitalized interest is not a valid form of cost in place for a project
- Value of the property will be based on appraisal ”as-is” value and ”as-complete” value, as well as referencing a purview report
- Value of property will be based on comparable units that have been actively traded on the market in the last 6 months or comparable income approach
Debt coverage ratios:
Evidence of sufficient equity to complete construction (if required) and to service debt (if required)
Repayment of loan:
Loan repayment either through refinancing following completion of home(s) or by sale of the property
Geography and liquidity:
Lander requires comfort on liquidity of the property; max LTV of loan will be adjusted accordingly
Construction advances:
Advance amount will not exceed 100% of the cost of work in place as substantiated by invoices
Land for Redevelopment
Land held for redevelopment refers to a real property asset that is currently unimproved, i.e. there is no existing construction on the property. Additionally:
- The land must have been evaluated by an independent planner’s opinion that the time to refinancing by way of a construction loan, site plan approval, or property sale is estimated at less than 24-months.
- The redevelopment plan is consistent with applicable province/city official plan
Loan requirements:
- Time to refinance by way of construction loan after site plan approval or prorerty sale is less than 24 months
- Redevelopment plan consistent with official plan
- Land does not need to be rezoned for its intended us
- Where the lands are purchased in a arms-length transaction
Mortgage position:
1st / 2nd
Additional considerations for LTV calculations:
- Capitalized interest is not a valid form of cost in place for a project
- Valuation of land will be based on as of right density
- Value of land will be based on comparable property sales when the development is more than 12 months away and a construction budget is not yet available
- Otherwise, value of land will be based on residual land value analysis
- Value of property will be based on comparable units that have been actively traded in the market in the last 6 months or by Morrison Financial approved appraiser
Borrower experience:
Demonstrated ability to service debt and/or experience in achieving site plan approval
Repayment of loan:
- Refinancing following site plan approval
- Refinancing by sale of property
Geography and liquidity:
Lander requires comfort on liquidity of the property; max LTV of loan will be adjusted accordingly
Home Purchase & Refinance
This relates to single-family home for the any of the purposes outlined below:
- Purchase
- Debt consolidation
- Bridge financing
- Refinancing of existing debt
Loan purposes:
Purchase / Refinance / Debt consolidate / Bridge financing
Mortgage position:
1st / 2nd
Loan amount:
Up to $800.000, greater amount available on case-by-case basis
Loan term:
Open, 6-month, 12-month, 24-month
Occupancy:
Owner occupied or rental
Interest rate:
Variable
Amortization:
Up to 35 years, interest only
Credit score:
Not required, lower rate if 680+
Income verification:
Required (NOA, LOE, Pay stub, 3 months bank statements)
Appraisal:
Required
Property inspection:
Required
Let us help you get started
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FAQS
New developers may have many questions about borrowing. Read more of our frequently asked questions or reach out today to speak with a finance professional.
