Mezzanine/Equity Funding
Mezzanine/Equity Funding finances the gap between a developer’s primary or first mortgage and the total development costs.  Often this results in the full funding of the equity requirements to complete the project, the soft costs of the project and any ongoing charges and taxes payable during the course of construction.  While traditional Mezzanine Funders will require profit share arrangement with their clients, Need A Mortgage has access to Funders that simply charge a commercial interest rate on the funds advanced.  This provides certainty for the developer in that they know up front real costs of the finance and they are not relinquishing hard earned control over the development to a third party.

Funding against Cost
Funding against Cost, a more traditional, institution based type of lending, sees lenders advancing funds against the actual costs of a development.  While traditional lending institutions require developers to contribute at least 20% of the hard costs of the development, Need A Mortgage has access to institutions that will lend up to 80% of the development total costs (as opposed to the hard costs which often equates to around 90% of hard costs).  Need A Mortgage also recognise the value of development approval and improving the land’s value as real equity.  When supported by sufficient presales, Need A Mortgage lenders will lend up to 90% of costs, and in some circumstances, when coupled with increased land value (with development approval), can fully fund developments.

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