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Company Overview

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.

Our Strategy:

  • Preserve investor capital by:
    • lending primarily against income-producing commercial real estate,
    • mitigating concentration risk by diversifying geographically, by asset type and borrower and
    • ensuring conservative loan-to-value ratios.
  • Provide strong inflation-protected returns by:
    • ensuring high portfolio turn-over,
    • investing in short-duration loans (<5 years) and
    • allowing investors full participation in lender fees, which are collected each time a new loan is issued – 100% of which is paid to the company.

Our Business

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

Key differences in loans provided by a traditional Canadian financial institution and what we can provide include:

  Timbercreek Financial vs.  Canadian Financial Institutional Conventional Mortgages
Loan size  $1–50 million   $50 million +
Funding Approval Period 4–6 weeks   2–3 months
Term  < 5 years   >5 years
Loan Type Primarily interest only   Principal repayment plus interest
Loan-to-value ratio Up to 85%   Up to 60%