Toronto Developers Stay Afloat Borrowing Against Unsold Condos
Real estate lender Nav Deo has been taking a lot of calls from Toronto developers that suggest things are getting desperate.
In the worst market for new condos in 35 years, more builders are seeking to borrow against unsold units in their own properties. Deo said so-called inventory loans make up 60% of his financing requests now, compared with almost none last year. If a developer needs the money to start a new project, he's happy to oblige. But most are looking for help to pay other debts, and he turns those down.
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