You purchased a pre-construction property. Closing is approaching, and you discover you don't have enough available cash, or enough qualifying income, to complete the purchase through conventional financing. Does that automatically mean private lending? Not necessarily.
The challenge
A recent client needed funds to close a pre-construction condo but couldn't qualify under standard A-lender income requirements. They also owned another property worth roughly $1 million, with an existing mortgage of about $200,000. There was significant equity. The challenge was accessing it through a structure they could qualify for.
The approach
We reviewed the existing property, outstanding mortgage, overall position and available lender policies. Based on that, we secured an A-lender secured line of credit against the existing property to help facilitate the condo closing, with no broker fees on that financing. The result was A-lender financing in a situation where private lending might otherwise have been considered.
What this means for other borrowers
Equity and available cash are two different things. Substantial equity doesn't automatically qualify you for a mortgage or line of credit — the lender still needs to approve the borrower, the property and the structure. But not qualifying under one approach doesn't mean every option has been exhausted.
- What assets and properties do you own?
- How much debt is secured against them?
- What funds are actually needed to close?
- Which lending policies fit your complete financial position?
- Are the resulting payments manageable?
Have a closing approaching and equity tied up elsewhere? Book a strategy review with CD Mortgages. Bring your purchase agreement, closing date and current mortgage details so we can assess the options.