Private Mortgage Success Story

Customized Construction Financing in Muskoka

A borrower was seeking additional funding to complete the construction of their dream cottage on one of Muskoka’s smaller lakes. Despite being a AAA borrower—with a strong monthly income of $70,000 and significant net worth—their bank required an additional $1,000,000 out-of-pocket investment before releasing any construction funds. The client didn’t have the liquidity to meet this demand without disrupting other investments.

A structured a solution by introducing a private lender who was willing to lend based on a percentage of the as-complete value of the property, rather than a percentage of the project cost, as the bank had proposed. This approach provided the borrower with sufficient capital to move forward with the build—without the need to liquidate existing assets.

To complete the financing strategy, a low-cost take-out mortgage was arranged through a conventional lender, ensuring a seamless and cost-effective transition once construction was complete.

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Todd Hunter
Mortgage Agent, Level 2
License No. M22000871
Direct: (416) 270-7962