Mortgage Knowledge Base
Mezzanine finance can be used to finance the acquisition or development of properties and land. In this context, mezzanine debt finance is typically structured as a junior loan that is secured by the property and the borrower’s personal assets.
Mezzanine finance is a type of financing that is secured by a second charge on a property and is used to supplement the primary loan (first charge) if the borrower does not have enough funds to complete the project using the primary loan alone. While the primary loan can typically cover up to 65% of the property’s value or 80% of the project costs, mezzanine finance can bring the total financing up to 90% of the project costs,
