Financing for Trump Tower, Shangri La, and 1 King West

ASHBURN, VA

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WOJ

Buzzer

Financing for Trump Tower, Shangri La, and 1 King West

Any one having issues getting financing for these projects due to the condo/hotel registration? Please give feedback, as in which lenders in Ontario sign mortgages for them. Thanks

Canada / New Developments

RIZ

Buzzer

It is hard to get mortgage financing for condo hotel projects. A lot of banks shy away because of the risk that the value of the hotel brand if changed could greatly diminish the value of the residential suites. I heard TD is open to financing but you should check with your own bank as well.

WOJ

Buzzer

Thanks Riz. I heard that as well, that they will entertain deals on a branch walk in basis, but on a case by case basis. So if you dont qualify with them, you are up a creek with no paddle. Yikes. Great for the value of suites when you cant sell them.

WOJ

Buzzer

No help thru broker channel as well. Even equity lenders are shying away. Looks like a lot of private money is gonna be needed.

LEONARD THE BEE

Buzzer

160

According to the New Home Buyers Network on Twitter:
"Financing can be done pretty easy as long as you have a significant down payment (20 percent)", with further clarification, "...a significant down payment and a very, very good credit rating."
Source: http://twitter.com/#!/NewHomeBuyers/status/93335516983984129
@Woj, is this the case for your clients?

WOJ

Buzzer

Thanks bee. Ya I got same reply. Scotia and TD thru branch. Now hearing that DUCA Credit Union will look at them case by case basis with 40% down

WOJ

Buzzer

Just as an update I have found a couple of other lenders that will do the financing for Trump and Shangri La at 25% down.

HORMAZD NICHOLSON

NewBee

I've gone to many banks and private lenders looking for financing on Trump Towers. I have only found one lender so far that will finance 50% L.T.V. on the condo suites. I'm looking for a lender that will do 50%. L.T.V on the hotel suites!!! Keep in mind that this is 50% of the appraised value which is in some cases only 25% of the purchase price!!