MF3 - Mortgage Fund Three

By: Mf3  09-12-2011
Keywords: Mortgage, loan, commercial mortgage

MF3 Product Line

MF3 has four product lines designed to be competitive within different segments of the Canadian commercial mortgage market. We offer straightforward first and second mortgages that compete on several fronts, and we can provide more innovative mortgages that are unique to the situation through our High Ratio and DIP product lines.

MF3 First

  • First Mortgage
  • Loan size - $2-25 Million
  • Loan to Value - Up to 75%
  • Term - Partially Open Float or Fixed for up to 5 years
  • Rate - A spread over Bonds or Prime Plus
  • General Underwriting
    • The MF3 First is ideal for straightforward acquisition and refinance. The Real Estate security must be income producing with no significant negative underwriting issues.

For more information - Please contact a Licensed Originator.

MF3 Second

  • Second Mortgage
  • Loan size - $2-20 Million
  • Combined Loan to Value - Up to 75%
  • Term - Partially Open Float or Fixed up to 5 years - The term may be less than the underlying first mortgage.
  • Rate - extremely competitive - low single to mid digit
  • General Underwriting
    • The ideal use of this MF3 mortgage product is to replace a maturing CMBS loan using a first mortgage and our low cost, flexible MF3 Second. The real estate security must be income producing with no significant negative underwriting issues.
    • A MF3 Second may also be used to lever equity when the underlying first has a low loan to value and is locked in. An interest only MF3 Second levers equity and maximizes cash flow!

For more information - Please contact a Licensed Originator.

MF3 High Ratio

  • Second, Third, or Unsecured
  • Loan size - $2-40 Million
  • Loan to Value - Variable
  • Term - Partially Open Float or Fixed up to 5 years
  • Rate - Market Determined
  • General Underwriting
    • The ideal use of this MF3 High Ratio Second is to support an experienced and qualified borrower in executing a feasible business plan with additional leverage.
    • There are no hard and fast rules except the Borrower must have some real cash in the deal.
    • The MF3 High Ratio Second has been used to finance a management led public to private transaction, as well as it has been used several times to bridge tenant issues or assist in a development cycle.

For more information - Please contact a Licensed Originator.

MF3 DIP

  • Debtor In Possession (DIP) Financing - Geographic Limitations
  • Loan size - $500,000 to $5 Million
  • Term - Partially Open Float or Fixed
  • Rate - Market Determined
  • General Underwriting
    • DIP loans are utilized to provide the borrower with the necessary funds to cover the costs of implementing a plan of arrangement or to facilitate an orderly liquidation in connection with the filing under a CCAA.
    • DIP credit facilities provide for working capital, maintenance capital expenditures or other ordinary course expenditures in accordance with cash flow statements which have been reviewed and approved by the MF3 , the monitor and the court.

For more information - Please contact a Licensed Originator.

The information in this article was current at 06 Dec 2011

Keywords: commercial mortgage, loan, Mortgage, Mortgage Product, second mortgages,

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