Mortgage solution
Flip financing
A flip isn’t financed like a home. The lender looks at the after-renovation value, the schedule and, above all, how you get out of the loan.
Short-term financing, not a standard mortgage
Most conventional lenders won’t finance a purchase meant for quick resale. So you go to an alternative or private lender, at a higher rate and on a short term.
Plan the exit first
The lender wants to know how the loan gets repaid: resale, refinance, buyer financing or another source of cash. With no credible exit, the rate isn’t the main issue.
Risk from renovation delays
Each month of delay adds interest on an expensive loan, while the market can turn against you. Build in extra time and budget. Renovation projects run late far more often than they finish early.
Documents to gather
What the lender will ask for.
- Purchase price
- Renovation budget
- Resale timeline
- Value after work
- Financing fees
- Exit plan
Frequently asked
Can a flip be financed with an ordinary mortgage?
Rarely. Conventional lenders finance a home or building you plan to keep, not a quick resale. A private or alternative lender will, at a cost that belongs in the profitability calculation from the start.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Have your file reviewed before you commit.
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Pick the situation closest to yours.
Contact
Tell Mathieu about your project
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
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- Across Quebec, in French and English
- No fee on most residential files