No Fixed Amount
Type of Program:
The Multi-Unit Residential Loan Program provides loans to property developers which will assist in the construction of multi-unit residential developments focusing on the rural areas of PEI. A multi-unit development consists of 2 or more units.
Comments on Funding:
Funding will be up to a maximum of $4M, with up to a maximum of 90% loan to value for new construction and up to a maximum of 80% of loan to value for renovations.
There will be a 4% fixed interest rate for up to a 10 year term amortized over 25 years (30 years on exception in rural areas).
Loan may be prepaid at any time, without penalty.
Securities are required: first position mortgage, and unlimited personal guarantees.
The borrower and guarantor must provide their covenant/guarantee for 100% of the loan for deficiency after enforcement of security.
When It Ends:
complete and submit an application and relevant business plan and projections to an account manager with Finance PEI,
participate at an interview with the account manager to discuss the business proposal and the next steps to determine eligibility.
Applicants must submit: