Land financing

Author: MassMortgageGroup .com |

Commercial Mortgage Toronto

It is said “Land is a big deal” and indeed it is. Land purchase and land financing is one of the most sophisticated, time consuming  and rigid processes in our industry. From a financing point of view, we consider land to be an investable asset when that land has potential for residential or commercial development at some point in the near future. While you may assume that every piece of land has the potential to be developed, however, depending on the stage in which the land falls under, it may take some steps before you can move onto the development phase.

Below are listed the different development stages a piece of land may go through:

  1. Agricultural land:  land that is specifically used for farming purposes
  2. Raw land, or pre-development land: May be in the city plan for future development but no service has been done ( no swerve systems, no power, no pipes, or pavements etc)
  3. Land with near future development plans:  these types of land are the most popular one for Investment purposes . Some conceptual (proposal) plan has already been developed and are in place. Sometimes, the concept plan has been even proposed to the municipality for review and approval . 
  4. Site-plan-approved Land: the site plan has gone through the rigid process of city approval and the permits for development have been issued by municipalities
  5. Horizontal developed land:  where the land has been serviced and ready to go for construction (Installation of power, pipes, pavement, etc.)
  6. Vertical development: the final stage of  development and construction has begun 

According to the above mentioned facts, land location, land zoning and use status,  land permit and service stages, as well as the urban or the city official plan, all together, can determine  the type of lenders and financing program which are available to borrowers. Our team of experts, together with our third party professional consultants are ready to help you with any of the above mentioned stages from financial analysis and due diligence when it comes to the purchase, financing and even development of your project/ investment. We will work together and be by your side through the entire process to ensure your investment is feasible both financially and technically. 


Schedule virtual meeting