Conventional Bridge Mortgage
Provides short-term flexibility to complete re-leasing or lease-up activity, complete capital repairs, prepare an asset for redevelopment, restructure ownership of the asset, or release equity to fund subsequent acquisitions.
Conventional Bridge Mortgage Details
| Transaction types |
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| Eligible property types |
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| Locations |
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| Loan amounts | $3M to $25M |
| Maximum LTV | Up to 75% |
| Terms | 1 - 3 Years (other terms may be available) |
| Interest rate | Competitive Spread over Government of Canada (GOC) Bonds |
| Recourse | Required |
| Lender fees | Flexible and structured for each loan |
| Commitment fees | 1% paid on commitment acceptance (refunded upon loan advance) |
| Amortization | Up to 30 years |
| Interest only | Available, as required for each loan |
| Eligible security |
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| Minimum debt service coverage | 1.10x |
| Reserves/ holdbacks | May be required (deal dependent) |
| Reports | Phase I Environmental Site Assessment (ESA), Building Condition Assessment (BCA), Appraisal (AACI) |
| Other | Early rate lock program available to eliminate interest rate risk in advance of funding |