Land Financing in London, ON

land financing in London prices off the Government of Canada 5-year benchmark bond yield plus a 525 bps land financing spread, landing at 8.40% indicative. Pre-development debt secured by raw or serviced land inventory. On the $3,200,000 average London transaction, a 50% advance is $1,600,000, carrying $153,312 of annual debt service on a 0-year amortization and a 2-year term.

Leverage binds before coverage here. The wide 6.1% cap rate produces roughly $195,200 of NOI, enough for $1,697,629 at a 0.00x floor — about $97,629 above what the 50% LTV cap will advance. The deal is sized by value, so the appraisal, not the rent roll, is the document to get right first.

London scores 100 on the Capitalor Lender Density Score — a deep market, with 29 tracked lenders and brokers against 9,400 commercial buildings. Expect competitive tension on well-covenanted paper: quote at least three lenders before accepting a spread.

Stress the file before a lender does. Holding the $1,600,000 loan constant, coverage falls to the 0.00x floor at roughly 9.12% — 0.72% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this London deal survives renewal.