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Providing a better understanding of the impact of COVID-19 on current and future real estate financing conditions

This survey, conducted by Altus Group’s senior appraisers and managers, was completed in order to better understand the impact of COVID-19 on current and future real estate financing conditions. Results of this special survey are correlated with historical trends from Altus Group’s quarterly investment survey, providing better insights on the factors impacting lenders strategy.

Surveys were conducted over the month of June, 2020 with more than 50 senior lenders and brokers responsible for their firm’s lending strategies at provincial or national levels. The survey revealed that debt parameters do not differ significantly across provinces and so all results were combined.

Industry response to COVID-19 

Default monitoring

At the time of the survey, lenders considered loan defaults to be under control

Change in strategy

Only 6% of institutional lenders are planning to increase Bridge/Mezz financing

Strategic operational change

Survey respondents are expressing intent to maintain volume of debt but loan approvals are proving to be challenging for Western markets

Short term risks

82% of respondents indicated that debt service shortage / default was the biggest risk for commercial real estate lenders

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