FINANCING
OUR LENDING APPROACH
First
Mortgages
Only
75%
Maximum
Loan to Value
Competitive
Interest
Rates
Monthly
Interest Only
Payments
FINANCING TYPES
Construction & Development​
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Residential
​
Commercial
Mixed-Use
​
Land Acquisition
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Purchase & Re-Sales
​
Lease Restructuring
FUNDING DETAIL
Loan amounts up to $8,000,000​
​
Terms averaging 6-24 months
Lending Areas:
BC & AB​
​
Competitive Rates
Our rates and fees for each deal are determined by a range of factors, including but not limited to the current market, term required, location, property type, borrower experience, financial capacity, level of complexity, and overall risk involved.
LENDING APPROVAL PROCESS:
1. Mortgage Application Submission or Request to Lender
​
*Submission to include all funding requirements and project details if applicable.
Any documents available to support the request to be sent at this stage.
2. Application Letter
​
Lender presents basic financing terms to be agreed on by Borrower.
Upon Application Letter Execution, Lender pursues further due diligence for loan approval.
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3. Commitment Letter
​
Lender presents detailed terms and requirements for financing.
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First Island's due diligence includes but is not limited to review of appraisal, contract of purchase and sale, financials, survey, environmental, credit checks, credit committee approval and site inspection if applicable.
CONSTRUCTION
FINANCING
Construction financing follows a cost-to-complete model
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Max loan-to-value (LTV) ratio is 75%
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Loan amount based on approved budget
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Considers purchase price &/or estimated completed value
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An "as complete" appraisal confirms value when applicable
CONSTRUCTION
BUDGET
Land Value:​
The lower of purchase price or appraised value of land
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Soft Costs:
Expenses not incurred during construction process i.e.: legal, fees, finance costs, permits, insurance & other relevant expenses
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Hard Costs:
Expenses incurred during the construction process
*Initial budget and draw-requests undergo a thorough review and approval process by the Lender &/or the Lender's cost consultant.