Are you wondering about land loans in Canada and how to buy this kind of real estate? As your Toronto mortgage broker, we can tell you the process is quite similar to purchasing other types of real estate that has buildings on it.
Due diligence is important. That includes a title search to make sure there are not any liens on the property you want to buy.
Here are some other boxes you need to check.
- The loan application is designed to provide lenders with information about your credit history, income and the down payment. Success depends on your credit score and the lenders requirements, and the intentions you have for the land. You can get a mortgage for anywhere from 25% to 35% down. Private lenders will have larger down payment requirements.
- Many land loans in Canada have higher down payment requirements because the value is smaller without any structures on the land itself. In other words, lenders see a greater risk in these transactions.
There are different types of land that you can consider.
- A lot is a semi-developed land/s that have some of the basic utilities like electricity, water/ roads and sewers.
- Raw land, on the other hand, is a plot i/t’s almost left in its natural state. It is uncultivated and undeveloped with no man-made improvements.
It doesn’t matter whether you are buying a piece of land for commercial or residential purposes. The decision to get a mortgage for land loans in Canada can pay off. OMJ Mortgage Capital can help in a variety of ways. We provide unbiased independent advice and have a proven track record. Our team has an excellent understanding of financing structures and real estate. Get in touch today to learn more.
