West Vancouver

Second Mortgage, Construction

Loan Amount: $2,125,000
Interest Rate: 8.75%

Term: 1 Year
Loan To Value: 47%
Location: West Vancouver

A local builder had acquired land on a prominent street in the British Properties for approximately $2,500,000 with the intent of building a high-quality home on spec.  A bank mortgage of $1,400,000 was obtained by the borrowers to assist with the purchase.

Once construction plans and permitting were in place, a second position construction loan was provided in the amount of $2,125,000.  Total debt was therefore $3,525,000, though the construction loan was released gradually on a cost to complete basis.

Once completed, the home was sold for approximately $7,500,000, resulting in a Loan to Value of 47%.