Timbercreek Financial is a leading non-bank lender providing shorter-duration structured financing solutions to commercial real estate investors. We invest directly in a diversified portfolio of high quality structured mortgage loans primarily secured by stabilized, income-producing commercial real estate, such as multi-residential, office and retail buildings located in urban markets across Canada. Our focus on lending against income-producing real estate ensures that there is income from the property to service the loan, which reduces the likelihood of default.
Our sophisticated, service-oriented approach to lending allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet the needs of our borrowers, while providing strong risk-adjusted returns for our investors.
Timbercreek Financial fulfills the demand from an underserved sector of the Canadian mortgage market by investing in shorter-term, structured mortgage loans which are provided to commercial real estate investors looking for faster execution and more flexible terms than are typically offered by Canadian financial institutions. This segment of the Canadian borrower market is typically under-serviced by commercial banks that are reluctant to dedicate resources to these smaller, shorter-term mortgage investments and cannot typically provide the structure required to meet the borrower’s needs.
Our borrowers are sophisticated commercial real estate investors, typically looking for financing to bridge a period of up to five years for such items as capital improvements and redevelopment of a property, or for the purchase of another property. The loans are normally repaid with conventional mortgage funding from a financial institution once the transition period is over or with proceeds from the sale of the property.
Borrowers are willing to pay higher interest rates and fees for structured mortgage loans as our loans provide the ability to execute quickly on real estate investment opportunities, early repayment privileges, structured solutions including the option to use multiple properties as security and potentially lower monthly payments.