Land financing in Ontario requires a clear understanding of both the property and the proposed financing. Whether you are purchasing a site, refinancing land you already own or preparing for an existing mortgage deadline, organizing the details early can help you identify the questions that need to be resolved.
True North Financing helps borrowers explore options based on the property, their financial circumstances and lender requirements.
Confirm the Property’s Current Zoning
Zoning determines how land may be used and what buildings or structures are permitted. A proposed future use should not be treated as an approved use.
Confirm the current zoning with the municipality and identify whether your plans require a zoning amendment or other approvals. An official plan designation and a zoning classification are different parts of the planning framework.
If approvals are pending, describe their status accurately. Avoid presenting a hoped-for development outcome as a certainty.
Prepare a Clear Property Package
Useful information to gather includes:
- Property address and legal description.
- Purchase agreement, if you are buying.
- Current zoning and information about the proposed use.
- Existing mortgage balances and relevant deadlines.
- Available surveys, appraisals and environmental reports.
- Your requested financing amount and proposed repayment plan.
The lender will determine which documents and assessments are required. Having an organized package helps make the initial discussion more productive.
Plan Ahead for Existing Financing
If you have a vendor take-back mortgage, often called a VTB, review its terms and dates carefully. Identify whether you are approaching a renewal, maturity or another contractual deadline.
Begin exploring your options before that date. Do not assume an extension or replacement financing will be available. Ask your lawyer to clarify the existing obligations and the documents needed to complete a refinance.
Compare the Full Financing Structure
When reviewing a proposal, consider the interest rate, lender and broker fees, legal costs, payment structure, security requirements and repayment conditions.
Also consider the proposed exit strategy. A plan that relies on selling, refinancing or obtaining development approvals should account for possible delays.
Discuss Your Land Financing Needs
Tell us about the property, current zoning, existing financing and your timeline. Explore land and construction financingor request a consultation.
Call 647-456-3424 or email mohan@tnfinancing.ca.
Financing is subject to property review, borrower qualifications and lender approval. Confirm planning matters with the municipality and legal obligations with your lawyer.
Source for the zoning section: Ontario — Zoning Bylaws.
