bcIMC Investment Management Corporation
Client Login
 
 

bcIMC finances construction mortgages on Canadian commercial and multi-family residential properties through our Construction Mortgage Fund. The risk factors that are evaluated include: location; structure quality; pre-leasing/pre-sales; green building features; borrower and covenantor's financial strength; loan-to-value level; debt servicing ability; borrower's experience. Mortgage security may also include additional provisions such as, personal guarantees, corporate guarantees, letters of credit, and the pledging of additional collateral.

Security

First or second mortgages

Asset Types
  • Hotels
  • Industrial
  • Multi-family residential (including condominium projects)
  • Office
  • Raw land (tied to a credible development plan)
  • Retail
  • Retirement Homes
Terms
  • Typically 12-36 months
  • Upon completion the mortgage may be eligible to be rolled into the Fixed-Term Fund
Interest Rates

Construction mortgages usually have "floating" interest rates. Interest rates for these loans are typically determined by adding a credit and liquidity premium onto bank prime. The size of risk premium varies based on factors specific to each development project. bcIMC's portfolio managers utilize a multi-factor risk rating model to assess risk levels of individual investment opportunities. The risk factors that are evaluated include: location; structure quality; tenant financial strength (preleasing levels) and/or pre-sale amount; borrower and covenantor's financial strength; loan-to-value level; loan-to-cost level; debt servicing ability; developer's experience.

Loan-to-Value

Maximun 75 percent loan-to-value

Loan Size

Typical range $5,000,000 to $250,000,000

Additional Security

Mortgage security may also include additional provisions such as: personal guarantees; corporate guarantees; letters of credit; the pledging of additional collateral.

Pre-Funding Conditions

The Construction Fund only finances mortgage developments to experienced developers and utilizes qualified quantity surveyors to oversee development progress. The Construction Fund also requires significant pre-sales and/or pre-leasing levels for the project, as well as sufficient profit margin levels. No mortgages will be funded without a property inspection, current market appraisal, geotechnical inspection report and a current environmental audit.

Fixed-Term Mortgage Fund
Mezzanine Mortgage Fund

<< Mortgages

 


 
 

Copyright 2001 bcIMC - All Rights Reserved.
Conditions of use