$2.4M Private Second Mortgage Enables Completion of Penticton Townhome Development

Client: Experienced Multifamily Builder, Penticton Loan Amount: $2,400,000 CAD via Private Second Mortgage Facility

An experienced multifamily builder in Penticton was approaching the final stages of a residential townhome development when a $2.4 million funding shortfall threatened to delay completion. Although the project was nearing completion, conventional lenders declined to offer the required capital—demonstrating the limitations of traditional residential mortgage financing for end-stage construction.

To keep the project on track, we arranged a private second mortgage facility totaling $2.4 million, secured against the nearly completed asset. The loan was priced at 12% with a 1% lender fee and was structured specifically to cover short-term costs related to final finishes, landscaping, and occupancy approvals.

We completed expedited due diligence, including analysis of presale data, current appraisals, and construction progress. The private financing was closed in under two weeks—ensuring the builder retained momentum and met all project timelines.

Once construction wrapped and the townhomes were presold, the client transitioned into a CMHC-backed long-term refinance, using the proceeds to retire the private second mortgage in full.

This case demonstrates how private mortgage solutions—particularly second mortgage financing—can provide developers with strategic flexibility, bridging crucial capital gaps when institutional lenders step back. When timing, liquidity, and deal continuity matter most, private financing is a vital tool to ensure project success.

Discover how we’ve helped clients secure the funding they needed by exploring our case studies. Visit our services page to see everything we can do for you.

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