Development Financing Toronto
Land, servicing and construction capital for residential and commercial projects in Toronto and the GTA - arranged through institutional, alternative and private lenders.
Development files are not underwritten like a house purchase. There is no income to service debt at the land stage, approvals take longer than any pro forma assumes, and budgets move. We structure financing around where your project actually is - raw land, pre-approval, servicing, mid-construction, or nearly complete and short of capital.
Text or submit your project details for a quick, no-obligation review.
What development financing in Toronto actually looks like.
A project usually needs several different facilities before it produces a dollar of revenue. Land is bought and carried on equity. Servicing and infrastructure are paid for before anything vertical goes up. Construction is advanced in draws against certified progress, with lien holdbacks under the Construction Act. At completion, a sale, a lease-up or a take-out mortgage repays the construction debt.
Which lender fits depends on the stage. Banks and credit unions want approvals, a proven sponsor, and pre-sales or committed leases. Mortgage investment corporations and alternative lenders take files that fall outside that box. Private lenders cover land, servicing and second-position needs - often where the requirement is smaller and only a junior charge is available to the lender. We do not represent a single lender, so the file goes where it fits instead of where it is convenient.
Capital for every stage of a project.
Land acquisition loans
Capital to buy or hold raw and infill land while zoning, severance or site plan approval is pursued. Equity-driven, since there is no cash flow at this stage.
Servicing and site-work loans
Funding for roads, water, sewer, grading and other infrastructure that has to be in the ground before vertical construction can start.
Construction loans
Draw-based facilities for low-rise, townhouse, purpose-built rental, mixed-use, industrial and custom-build projects, administered against certified progress.
Bridge and inventory loans
Short-term capital to close a purchase quickly, refinance a maturing land loan, or carry finished but unsold or unleased inventory.
Second-position and mezzanine capital
Additional advances behind an existing first charge when a project needs more capital without disturbing the senior facility.
Take-out and term financing
Permanent or CMHC-insured term financing at completion to repay construction debt and stabilize a rental or commercial asset.
One package, the whole lending market.
Institutional, alternative and private in one place
Bank and credit union programs for approved projects, MICs for files outside bank policy, and private capital for land, servicing and second-position needs.
Financing before and after approvals
Entitlement in Toronto routinely runs longer than a pro forma assumes. We arrange capital at the planning stage as well as after permits are issued.
Deadline files handled
Firm closings, maturing land loans, and cost overruns get pushed to the front. Speed comes from a complete package, not from promises.
Toronto and GTA focus
Local marketability, municipal process and absorption drive what lenders will do. Every file is assessed against the market it actually sits in.
Development projects we help arrange financing for in Toronto
- Raw land, infill lots and severances
- Residential subdivisions and site servicing
- Low-rise, townhouse and stacked-town projects
- Purpose-built rental and multiplex conversions
- Mixed-use and retail-over-residential buildings
- Industrial and small-bay development
- Custom single-family and luxury builds
- Pre-construction condo closings and inventory
- Repositioning and major renovation projects
- Stalled or over-budget files needing rescue capital
From first call to final draw.
1. Project review
A short call on the site, the approvals, the budget and the exit. No cost and no obligation - we tell you quickly whether the market can fund it.
2. Package assembly
We help organize the pro forma, budget, schedule, drawings, approvals and sponsor background into a package lenders can actually underwrite.
3. Lender placement
Your file goes to the institutional, alternative and private sources that fit its stage and size, rather than to one desk that may decline it.
4. Term sheets compared
Rate, fees, term, advance schedule, holdbacks, covenants, personal recourse and exit conditions laid out side by side so you can see the real cost.
5. Due diligence
Appraisal, environmental where required, cost consultant review, and legal documentation coordinated with your counsel and your builder.
6. Draws and completion
Advances administered against certified progress through to lease-up, sale or a take-out mortgage at the end of the project.
Development financing questions, answered.
What is development financing?
Development financing covers the capital a project needs before and during construction: buying the land, carrying it through rezoning and site plan approval, paying for servicing and infrastructure, and then funding the vertical build through draws. It is underwritten on the land, the approvals in place, the project pro forma and the sponsor's track record rather than on personal income alone.
Can land be financed before approvals are in place?
Often, yes. At the raw-land or pre-approval stage there is no income to service debt, so lenders look primarily at equity, location, and the realistic path to entitlement. Loan-to-value is lower at that stage and pricing is higher. Once zoning, site plan or building permits are secured, the file usually re-prices and more leverage becomes available. Every file depends on the lender's own review.
Who lends on Toronto development deals?
Three broad groups. Institutional lenders and credit unions for approved, well-capitalized projects with strong pre-sales or leases. Alternative and mortgage investment corporations for files that fall outside bank policy. Private lenders for land, servicing, and second-position or bridge capital - commonly where the requirement sits under a few million dollars and speed matters more than pricing.
How much equity do I need to put in?
Expect to contribute meaningful equity - land value counts toward it. Land and pre-servicing loans typically advance a modest share of appraised value; approved construction facilities can go higher against total project cost, usually with cost consultant oversight. The exact ratio is set by the lender after appraisal, budget review and a look at the project's exit.
How does a construction draw schedule work?
Funds are advanced in stages against work completed, not up front. A quantity surveyor or cost consultant inspects the site, certifies the cost to complete, and confirms lien holdbacks under the Construction Act before each draw is released. Interest is usually reserved from the facility or paid monthly, and the loan is repaid on sale, lease-up or a take-out mortgage at completion.
What documents should I have ready?
A project summary, the purchase agreement or current title, zoning and approval status, drawings, a detailed hard and soft cost budget, a pro forma with absorption or lease assumptions, the construction schedule, the consultant and builder team, your track record on prior projects, and a clear exit plan. A complete package is the single biggest factor in how fast a term sheet arrives.
What types of projects do you arrange financing for?
Residential land and subdivisions, infill and low-rise, townhouse and stacked town projects, purpose-built rental and multiplex conversions, mixed-use and commercial buildings, industrial, and single-lot custom builds. Mid-rise and larger files are placed with institutional and alternative sources depending on approvals and pre-sales.
Can financing be arranged mid-project or as a rescue?
Yes - stalled and over-budget files are common. Options include a second-position advance behind the existing construction lender, a bridge to refinance a maturing land loan, or a full replacement facility. These are reviewed case by case and require current cost-to-complete reporting.
How long does development financing take to arrange?
Private land and bridge facilities can move within one to three weeks once the appraisal and legals are ordered. Institutional construction facilities normally take several weeks to a few months because of full underwriting, cost consultant review and legal documentation. Timelines depend on the lender, the appraisal, and how complete the package is.
What does it cost?
Development files carry a lender fee, a brokerage fee, appraisal and cost-consultant costs, legal fees for both sides, and interest that is typically calculated monthly on advanced funds. On commercial and development files the brokerage is compensated by fee, which is disclosed to you in writing before you sign anything.
Development financing across Toronto and the GTA
Municipal process, absorption and resale values differ block by block across the region, and lenders price that difference. Projects are reviewed against the submarket they sit in.
Tell us about the project.
Location, what you are building, approval status, the budget and how much capital you need. We will come back with what the lending market can realistically do - no cost and no obligation.
Text (647) 342-1355 for the fastest reply, or call the same number. Office: 1410-5140 Yonge Street, North York, Toronto.
Related financing in Toronto
Commercial mortgages in Toronto
Mixed-use, multi-residential, industrial and investment property financing.
Private mortgages in Toronto
Equity-based lending in first or second position for land and bridge needs.
Second mortgages in Toronto
Additional capital behind an existing first charge, funded quickly.
Commercial mortgage guide
How commercial and development files are underwritten in Ontario.
Mortgages Toronto
The full range of financing we arrange across Toronto and the GTA.
Refinancing in Toronto
Pull equity out of an existing property to fund a project.