Short-Term or Construction Financing
Short-term (construction) financing is available during the construction period of an approved project based on incurred costs. Interest is calculated and payable monthly on the 1st day of each month based on the posted short-term rates.
Short-term advances are processed on the 1st and 15th of every month and Infrastructure Ontario requires five business days notice to process a payment.
Clients can request construction loans through the online loan application and also view a summary of advances previously taken.
Long-Term Financing
On an agreed upon date, Infrastructure Ontario will purchase a debenture from the loan client for up to the approved amount of the loan as per their financing agreement. Principal and interest payments are payable monthly or bi-annually with the first payment being due one month or six months from the date of debenture purchase. The interest rate is fixed for the entire term. Debentures close on the 1st and 15th of every month. The debenture process generally takes about 4 weeks to complete.
Infrastructure Ontario offers both amortizing and serial debentures to clients. With amortizing debentures, borrowers pay equal amounts of blended principal and interest every six months. Alternately, with serial debentures, borrowers pay equal amounts of principal every six months and interest is calculated on the declining principal balance.
Infrastructure Ontario also offers Promissory Notes to non-municipal applicants.