For Shopping Malls, Is Yorkdale’s “Snobbery” Simply A Sign Of The Times?

Gap Financing

Gap financing is a short-term loan used in real estate to cover funding gaps until permanent financing or sales proceeds are available.

Gap Financing

September 30, 2025


What is Gap Financing?

Gap financing is short-term funding used to cover a temporary shortfall until permanent financing or revenue becomes available. It is common in construction, development, and acquisitions. Gap financing may come with higher rates and stricter terms, reflecting the higher risk for lenders.

Why Gap Financing Matters in Real Estate

Gap financing matters in real estate because it allows projects to continue without delay when permanent funding is not yet secured. It bridges timing mismatches and provides liquidity for critical stages. However, it can increase project costs and requires a clear exit strategy.

Example of Gap Financing in Action

A condo project nearing completion requires final contractor payments before unit sales close. Developers secure gap financing for three months, repaying the loan once proceeds from closings are received.

Key Takeaways

  • Gap financing bridges funding shortfalls temporarily.
  • Allows projects to continue without delay.
  • Carries higher costs due to risk.
  • Exit strategies must be well-defined.
  • Common in construction and development deals.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Moving Day: February 2026 Industry Hires And Promotions

Moving Day: February 2026 Industry Hires And Promotions

From left: Jennifer Drury, Conwest; John Jung, Prodigy Group; Annely Zonena, City of Toronto; Jordan Dawson, Broccolini; Yasmien Fadl, TD; Aziz Lakdawala, Brookfield Properties

You like to be in the know. We know.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in February 2026:

Keep ReadingShow less

Crestpoint Buys 145 Wellington For $50.8M, Site Slated For H&R REIT Tower

Crestpoint Buys 145 Wellington For $50.8M, Site Slated For H&R REIT Tower

The office tower at 145 Wellington Street West in Toronto (left) and the planned 65-storey tower (right). / Sullivan Law | Partisans with Turner Fleischer

The downtown Toronto office building located at 145 Wellington Street West — that was set to be redeveloped into a 65-storey tower — has officially been sold, leaving the fate of the planned project up in the air.

The 13-storey Class A office building constructed in 1987 — located kitty-corner from Roy Thompson Hall and just one block away from the Metro Toronto Convention Centre — was formerly owned by Toronto-based H&R REIT (TSX: HR.UN), which has made various development proposals over the years.

Keep ReadingShow less

OLT Advances Condo Atop 120-Year-Old Queen West Post Office

OLT Advances Condo Atop 120-Year-Old Queen West Post Office

Rendering of 1117 Queen Street West from November 2023 proposal/Giannone Petricone Associates

It’s been over two years since plans to adaptively reuse one of Toronto's oldest purpose-built postal offices were submitted to the City. Two refusals, three revisions, and an Ontario Land Tribunal (OLT) hearing later, the project finally has the go-ahead it sought back in November 2023.

The plans for 1117 Queen Street West have remained relatively true to the applicant’s original vision: a 29-storey condo tower integrated into a former Canada Post building, known as the Postal Station C. Featuring Beaux-Arts architecture and designed by Samuel George Curry in 1902, the building has been listed on the City Heritage Register since June 1973.

Keep ReadingShow less

Rental Is Having A Moment, And This Firm Is Building For It

Rental Is Having A Moment, And This Firm Is Building For It

1141 Bloor Street West, Toronto/Hazelview

For more than 25 years, Hazelview Investments has been shaping Canada’s real estate landscape.

With presence in six provinces and more than 20 cities across the country, the company has grown into a trusted partner for investors, developers, planners, and residents alike.

Keep ReadingShow less

BC Raises Taxes, Adjusts Housing Investments, And Partners With Build Canada Homes

BC Raises Taxes, Adjusts Housing Investments, And Partners With Build Canada Homes

BC Minister of Housing & Municipal Affairs Christine Boyle and federal Minister of Housing Gregor Robertson. (Government of British Columbia)

This week, a series of announcements were made that will go a long way towards shaping what the near future of government investment in housing looks like in British Columbia.

On Tuesday, right after the long weekend, the Province unveiled Budget 2026, confirming what was widely expected to be a record-setting deficit. In 2022, the Province had a $1.3 billion budget surplus. A few years later, the Province is now projecting a deficit of $13.3 billion for 2026-2027.

Keep ReadingShow less

Hyde Park Homes Purchases Berkeley Church, Cites Plans To Reopen Fall 2026

Hyde Park Homes Purchases Berkeley Church, Cites Plans To Reopen Fall 2026

The Berkeley Church at 315-317 Queen Street East in Toronto/Google Maps

More than two years after its parent company, Berkeley Events, was placed under receivership, Toronto’s Berkeley Church has been purchased by Hyde Park Homes, with the company revealing to STOREYS that they have plans to reopen the historic event venue later this year.

Built in 1871, the three-storey, brick-faced building at 315-317 Queen Street East in Corktown was initially a Wesleyan Methodist Church. In 1999, the space was converted into an event venue, used for weddings, corporate events, parties, conferences, and even some concerts (Tegan and Sara, Feist, and the Yeah Yeah Yeahs, just to name a few). The property was designated under the Ontario Heritage Act in 1997.

Keep ReadingShow less

CREA: Winter Storms Suppress January Home Sales

CREA: Winter Storms Suppress January Home Sales
Max Sandelin/Unsplash

Canadian home sales started 2026 on a colder note, with activity dampened by severe winter weather across parts of the country.

According to new data released Tuesday by the Canadian Real Estate Association (CREA), home sales recorded over Canadian MLS® Systems fell 5.8% month-over-month in January. Actual (not seasonally adjusted) sales were also 16.2% lower than in January 2025.

Keep ReadingShow less

New (Free) Guide Shows Toronto Homeowners How To Tap Into ‘Missing Middle’

New (Free) Guide Shows Toronto Homeowners How To Tap Into ‘Missing Middle’

'Missing Middle' housing in Toronto

Liam Gill doesn’t describe himself as a developer, but that hasn’t stopped him from carving out a place in Toronto’s development landscape. Now, the lawyer and tech entrepreneur wants to help others do the same with his Citizen Developer’s Guide, released Wednesday morning in collaboration with More Neighbours Toronto.

The guide is designed for people like Gill — those without a formal background in real estate development, but with an interest in densifying their own home or investment property. Throughout the document, Gill walks readers through how to estimate build costs, cash flow projections, and ultimate market value, and go about the zoning, permitting, and financing processes.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.