The Role of Development Financing in Ontario Real Estate Projects
- Seventy Seven Park
- Sep 24
- 2 min read
Development financing is the backbone of Ontario’s growing real estate market. From custom homes in rural towns to multi-unit builds in urban centres, access to financing determines how projects progress. Builders and investors need clear strategies to secure the right funding and manage costs effectively.
Why Development Financing in Ontario Matters for Real Estate Growth
Ontario’s population growth and housing demand drive the need for new development.
Development financing provides essential capital for land, permits, and construction.
Without tailored financing, even strong projects face delays and risks.
Key Types of Development Financing Ontario Investors Use
1. Land Acquisition Loans
Enable developers to secure property before construction. Terms depend on zoning, permits, and location.
2. Construction Financing Ontario
Funds are released in stages as work progresses, ensuring builders maintain momentum while managing risk.
3. Mezzanine Financing
A hybrid debt-equity tool that fills funding gaps when conventional lending is not enough.
4. Equity Partnerships
Developers often bring in private investors, sharing risk and profits while accessing greater capital.
How Real Estate Development Funding Works in Practice
Pre-approval and feasibility: lenders review project details and expected returns.
Loan-to-value (LTV) ratios: financing is structured based on land value, build cost, and projected outcomes.
Exit strategies: repayment is tied to unit sales, refinancing, or income streams.
Challenges with Development Financing in Ontario
Municipal zoning and permit delays.
Rising material and labour costs across Ontario markets.
Interest rate changes affecting lender requirements.
Smart Strategies for Builders and Investors
Work with specialists in development financing Ontario.
Diversify funding sources to balance risk.
Align financing schedules with project milestones.
Partner with firms experienced in both real estate and mortgage structuring.
How Seventy Seven Park Helps
At Seventy Seven Park, we provide tailored development financing across Ontario. From land acquisition loans to construction financing, we connect clients with banks, B-lenders, and private capital. Every deal is designed to reduce risk and maximize returns.
Are you planning a development project in Ontario and need the right financing strategy?
Contact us today to structure the right solution.
Seventy Seven Park Mortgages
(416) 350-8448
Brokerage Licence Number #13004
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