Repaying a private loan in twelve months

The three routes

• Selling the property
• Refinancing with an institution
• Completing the work and leasing the space

Timelines to expect

A refinancing takes six to ten weeks. A sale often takes three to six months.

Starting early

Start four months before maturity. A delay triggers renewal fees.

Preparing from day one

The day you sign, the repayment date is already known.

Note it and count back four months: that is when to act.

What blocks a refinancing

• Income not declared for tax
• A building still under renovation
• A vacant unit at the time of the request
• A credit record that has deteriorated

If nothing is ready at maturity

Renewal remains possible, with new fees. Negotiate before the date, not after.

Refinancing, the most common route

A private loan often bridges a temporary situation.

Once that situation is resolved, an institution takes over.

Document the correction: it convinces the next lender.

The cost of a delay

A renewal triggers new opening fees.

On a private loan, those fees often run to several thousand dollars.

Four months of lead time avoids that expense.