CONSTRUCTION MORTGAGES

Want to build a home that complements your lifestyle and highlights your personal taste? There are a variety of construction mortgages available today and high ratio financing for construction is also offered. Construction mortgages can be somewhat complicated and we will work closely with you through the process to ensure it is a smooth experience. You may purchase a newly constructed home, construct a home on your own or hire a contractor to build your home. In the case of a self build, you will act as your own contractor and hire sub trades. If you want a contractor to build your new home, you will enter into a contract with a registered builder. In both of these situations draws are required to pay for the home as the various stages are complete – referred to as progress draw.

The third option is to have a contractor build you a home and you pay for the home on completion – commonly referred to as a Completion Mortgage. A construction mortgage progress draw typically consists of an appraisal being completed based on the land value and value of the contract. Financing is based on this value. The mortgage funds are then distributed in draws (typically 3 or 4) as the project moves along with your down payment funds going in at the onset. The draws are based on a cost to complete meaning the lender will calculate the amount of money they would need to complete the project at each specific stage, hold those funds and release the balance to you. An appraisal inspection is required prior to each draw to confirm work is complete and the funds are then released to you through your lawyer.