Construction Mortgages in Ontario

What is Construction Mortgages

Construction mortgages are used to finance the cost to build a new home.

Many Canadians want a custom built home that includes specific lifestyle and functional amenities.

When seeking funds to build a new home, it is important to understand how construction mortgages work.

Unlike conventional mortgages, where the lender advances all of the funds at once, construction mortgages are issued according to a draw schedule, as certain milestones are completed.

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416-854-7697

Expert Help for Navigating Your Construction Mortgage

Thinking about building a custom home?

If so, construction mortgages are available to cover the majority of the costs.

I am a Level 2 mortgage agent who offers financial guidance toward building a new home or for significantly improving an existing home.

While the path to funding for a construction mortgage in Toronto is more complex than obtaining a conventional mortgage, it should be refreshing to know that my expertise will make the journey a lot smoother.

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416-854-7697

How to Qualify for a Construction Mortgage?

Lenders view a construction mortgage as a riskier type of loan than a convention mortgage or a commercial mortgage.

If a project is not completed for unforeseen reasons, a lender has to figure out what to do with an unfinished home.

To minimize the lending risks, borrowers need to meet above-average qualification standards to get a construction mortgage.

Lenders will generally require a favourable credit score, sufficient income, manageable debts and a down payment that is roughly 25 percent of the constructions costs.

Steps to Apply for a Construction Mortgage

The process to obtain a construction mortgage may appear overwhelming.

However, I am here to help facilitate the steps and resources toward getting a better mortgage rate than traditional banks provide.

I educate borrowers about the easiest path to secure construction mortgages, such as creating a construction plan, hiring a general contractor, maintaining superb credit scores and gathering documents that reflect financial stability.

Call me today at 416-854-7697 to apply for a construction mortgage in Toronto or Ontario.