Unlocking Equity on a Leasehold Property Most Lenders Wouldn't Touch
"A real story about finding the one program built for an unconventional property type."
🔑 The Challenge
Our client owned a leasehold property and wanted to refinance to pull out equity for a construction project, lower his rate, and move his cabin project forward. The problem: leasehold properties make most lenders nervous.
🔘Homeowner, Leasehold Property 🔘 Clear Construction Plan 🔘 Existing Lender Relationship
However, the vast majority of lenders wouldn't refinance the property or allow equity take-out at all — and his existing lender demanded a two-year wait before revisiting the file.
Why?
"The vast majority of lenders wouldn't refinance the property or allow equity take-out." – Lender feedback across multiple applications
📉 This is a common roadblock for:
- Owners of leasehold or other non-traditional property types
- Anyone told to "just wait" by their current lender
- Construction or renovation projects needing equity access
And it's a reminder that "most lenders say no" still leaves room for the lender who says yes.
Identified a specialized early renewal program at TD designed specifically for leasehold properties.
Secured a rate reduction through that program instead of waiting out the two-year window.
Structured a HELOC to fund the construction project directly.
The right program existed all along — it just took knowing where to look.
💡 What You Can Learn from This
Leasehold and other non-traditional property types have lenders and programs built for them.
“Wait two years” from your current lender isn’t always the only option.
A HELOC can be structured specifically around a construction timeline.
📞 Call to Action
Facing pushback due to your job or income style?
Let us help tell your story — and find the right mortgage solution for you.
📧 paul.davidescu@mortgagepal.ca