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A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing. It is usually called a bridging loan in the United Kingdom, also known as a "caveat loan," and also known in some applications as a swing loan. In South African usage, the term bridging finance is more common, but is used in a more restricted sense than is common elsewhere.
A mortgage-backed security (MBS) is a type of asset-backed security which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals that securitizes, or packages, the loans together into a security that investors can buy. Bonds securitizing mortgages are usually treated as a separate class, termed residential; another class is commercial, depending on whether the underlying asset is mortgages owned by borrowers or assets for commercial purposes ranging from office space to multi-dwelling buildings.
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Commercial mortgage-backed securities (CMBS) are a type of mortgage-backed security backed by commercial and multifamily mortgages rather than residential real estate. CMBS tend to be more complex and volatile than residential mortgage-backed securities due to the unique nature of the underlying property assets.
A hard money loan is a specific type of asset-based loan: a financing instrument through which a borrower receives funds secured by real property. Hard money loans are typically issued by loan sharks. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk and shorter duration of the loan.
Nonrecourse debt or a nonrecourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender can seize and sell the collateral, but if the collateral sells for less than the debt, the lender cannot seek that deficiency balance from the borrower—its recovery is limited only to the value of the collateral. Thus, nonrecourse debt is typically limited to 50% or 60% loan-to-value ratios, so that the property itself provides "overcollateralization" of the loan.
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Requires updating to reflect the current Income Tax Act and the growth of MICs that trade on the TSX.
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A mortgage loan or simply mortgage, in civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form of a collateral for a benefit (loan)".
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LendInvest is a British non-bank mortgage lender which provides a property lending and investing platform. As an alternative fintech lender in the property market, LendInvest provides finance to property professionals and small and medium-sized businesses (SMEs) around the UK. It also makes it possible for individuals, corporates and institutions to invest in secured property loans originated and underwritten by its mortgage team.
SoFi Technologies, Inc. is an American personal finance and financial technology company founded at Stanford University in 2011. It provides various direct banking services, while also serving other financial institutions via its technology platform. SoFi reports 8.8mn users and 158mn platform accounts, as of 2024.
LandlordInvest is a peer-to-peer lending platform that enables people to invest in residential, commercial, and semi-commercial bridging and development loans. The platform's target audiences are professional property investors and landlords. It was the first residential property-backed Innovative Finance ISA made available to UK savers.
Unison Home Ownership Investors is an American home ownership investment company based in San Francisco, California. The company uses a shared ownership model to allow customers to buy a home when they don't have enough capital to get a normal mortgage taking a percentage of the gain when the house is sold. The company also provides reverse mortgages for people to release funds out of an existing real estate asset taking a share of capital gain. The funding is provided by institutional investors such as pension funds.
References
- ↑ Dyson, Millie (9 September 2010). "Montello raises £20M for real estate bridging finance". myintroducer.com. Barcadia Media Limited. Retrieved 13 September 2010.
- ↑ Ketchington, John (24 February 2010). "Bridging specialist Montello to launch property loan fund". FT Adviser. The Financial Times Limited. Retrieved 13 September 2010.
- ↑ "Montello raises GBP20M for real estate bridging finance transactions". Property Funds World. 8 September 2010. Retrieved 13 September 2010.
- ↑ Hall, Robyn (8 January 2013). "Montello Launches Development Finance Fund". Mortgage Introducer. Mortgage Introducer. Retrieved 8 January 2013.
- ↑ Toner, Christine (9 August 2010). "Bridging Barriers". mortgagestrategy. Retrieved 13 September 2010.
- ↑ "Montello bridges finance gap". MoneyMarketing. 26 February 2010. Retrieved 13 September 2010.
- ↑ "London bridging firm saves borrower from foreclosure in final days". Bridging and Commercial Ltd. 9 August 2010. Archived from the original on 28 December 2010. Retrieved 13 September 2010.
- ↑ "Montello Capital Management" . Retrieved 19 June 2015.
