$1.83M Private Second Mortgage Enables Burnaby Subdivision and Construction Launch

Client: Experienced Builder & Entrepreneur, Burnaby

Purchase Price: $2,325,000 CAD

Loan Amount: $1,827,000 CAD via Private Second Mortgage Facility

Our client, a seasoned tile-installation entrepreneur, identified a lucrative opportunity to acquire a Burnaby property with subdivision potential into four distinct building lots. However, the existing structure on the site was uninhabitable, making the property ineligible for conventional mortgage or residential mortgage financing.

We stepped in with a private second mortgage facility of $1,827,000—representing approximately 78% of the purchase price. Structured at a fixed 10.25% interest rate with a 1% lender fee, this alternative mortgage solution offered the speed and flexibility required to capitalize on the land acquisition and prepare for future construction mortgage financing.

Our team reviewed the appraisal, subdivision feasibility, and the client’s successful development history, closing the loan within two weeks.

With the private mortgage secured, the client finalized the purchase, completed the subdivision into four buildable lots, and launched construction across all parcels.

This case demonstrates how strategic private mortgage lending can unlock high-value, underutilized land, supporting experienced builders with tailored funding and opening pathways to construction mortgage solutions when traditional financing isn’t viable.