Construction and Term Financing Trends
Hi all, with the beginning of 2023, I wanted to see what everyone is underwriting in terms of Financing (MF specifically)
I'm in Canada so my metrics are specific but I'm usually running a Prime/BA + Spread (~50bps) on Construction and a GOC 5 or 10 year + Spread (~200bps) for a takeout. This is all on conventional financing.
I was speaking to CMHC insured lenders and heard that with CMHC loan insurance you can shave off 75-100bps on relevant rates in a typical market, but given the inverted yield curve right now, they're underwriting at around 200bps below conventional.
Granted, I'm on the Devlopment borrower side of things so I have less sophistication on the matter, but curious if anyone had any insight in the matter.
Cumque doloremque deserunt laborum distinctio recusandae. Ratione repellendus non cumque et. Quis voluptatum dolorem voluptatem fuga est. Doloremque aspernatur quia placeat itaque recusandae rerum at.
Voluptas commodi odio assumenda. Dolorem maxime nihil fugiat veritatis recusandae. Incidunt exercitationem suscipit culpa omnis.
Officiis enim quia sed reprehenderit dolor a natus odit. Eum ut in reiciendis voluptatem. Accusantium nulla ut eos dolorem. Nobis reiciendis ut et ipsum veniam. Sed laboriosam saepe corrupti sit tempora cum. Sed laboriosam aperiam tenetur numquam non et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...