Construction Mortgages Toronto, Thornhill, ON

Our construction loan specialists are proficient in financing custom homes, infill building projects, and major land development or construction projects. As a mortgage professional with extensive engineering background, we are uniquely positioned to work with borrowers considering new construction loans.

Before deciding on a brand new home, it is wise to learn about the special terms and considerations in construction mortgages, also known as self-build mortgages. CMI certified mortgage brokers can help you decide which option best suits your particular situation. Construction mortgages are generally of two types:

• With a progress draw construction loan, money is disbursed to you as construction progresses. There are normally three draws at different stages of construction:35-40%, 65-70% and 100% completion. Completion is verified at each stage by a progress report from an appraiser.
• Completion mortgages apply to newly constructed homes purchased from a builder. Money is required only when the home is 100% complete. A down payment is still needed, but can often be paid in a series of installments.

As you begin your new home project and search for a construction loan, keep these tips in mind.

• Do a thorough check on the builder or contractor you have chosen. You need to know that they offer high-quality work and warranties or guarantees on workmanship. For new homes, look into the type of support you can expect after your sale is complete.
• When buying a new house, take a close look at the model home. It is a showcase of the builder’s skill and attention to detail so make sure you examine all facets of the construction.
• Always review plans carefully. Be clear on what is and is not included and what types of changes you can make as the construction progresses.
• Always get a written warranty or guarantee and read it. You need to know what is covered and ask about things that are not.

Our consultants on construction mortgages offer you objective, professional advice to get your building project started right. We can provide residential and commercial construction loans as well as remodeling loans that finance up to 95% of construction costs with interest rates as competitive as traditional mortgages. Contact us today for a free consultation.