LUXURY HOME CONSTRUCTION FINANCING - MAXIMUM LTV WITH PRIVATE BANKING
Designer Capital worked with our clients to secure Construction Financing for a luxury home in Whistler, BC.
Our clients are Self-Employed business owners with several locations throughout the Lower Mainland. Our clients draw a modest salary from their company, using most of their profits to re-invest and grow their business. Having discussed their file with their main bank, which included a strong Commercial Banking relationship, the clients were expecting a loan of ~$1,000,000 based on conventional financing guidelines, despite their strong relationship with the bank.
Working with our exclusive Private Banking partners at a major financial institution, Designer Capital was able to leverage our clients’ strong liquid asset position (personal and corporate investments) as well as corporate income to achieve this Novel Financing Solution:
Mortgage: $4,600,000 (72% Loan-to-Value based on Completed Value).
Construction Loan: Priced at Prime + 0.25% during construction – Converted into an Equity LOC and Mortgage combined product upon completion.
Competitive rates compared to the Big 5 Banks.
Construction priced at Prime + 0.25 vs. Prime + 1.00%.
LOC Priced at Prime + 0.00% vs Prime + 0.50% on completion.
Competitive mortgage rates to be offered upon completion.
Designer Capital’s Unbiased Advice secured our client Construction Financing at a high Loan-to-Value to allow for the minimum amount of capital injection from the client to complete the construction of their home. Through the Private Banking relationship, the clients also have the option to secure a Line of Credit against their investment portfolio to further leverage their assets for future projects, or corporate expansion of their business.