Construction Mortgage in Lower Mainland, BC
Are you eagerly anticipating the construction of your dream home?
A construction loan is a short-term loan that only covers the price of building a custom home. This isn’t the same as a mortgage, and it’s referred to as specialised financing. Once created, the prospective occupant must apply for a mortgage to pay for the completed home.
However, when it comes to home construction, there are various options accessible, ranging from new construction to a complete remodel. Whether you’re beginning from zero with a land loan or entirely refurbishing a property, there’s probably an appropriate loan.
CONSTRUCTION LOANS ARE OUR SPECIALTY
Before settling on a brand new home, it’s good to understand the particular terms and implications of construction mortgages, also known as self-build mortgages. Toor Jas is a licensed mortgage broker who can assist you in determining which choice is best for you. There are two types of construction mortgages:
- Money is disbursed to you as building advances with a progress draw construction loan. There are usually three draws at different stages of construction: 35-40 per cent, 65-70 per cent, and 100 percent completion. A progress report from an appraiser verifies completion at each level.
- Completion mortgages are used to finance the purchase of newly constructed residences from a builder. Only when the house is finished does money become necessary. Although a down payment is still required, it is frequently possible to pay in instalments.
WHAT TO BE ON THE LOOKOUT FOR IN A NEW HOUSE
You can begin looking for new home developments or plan your rebuild once your finance is in place.
- We welcome you to consult our network of trusted partners for links to builders and real estate agents.
- When you start your new home renovation, keep these pointers in mind and look for a construction loan.
- Always double-check your plans. Make sure you understand what is and is not included and what adjustments you can make as the project continues.
- Always obtain and read a written warranty or guarantee. You must understand what is covered and inquire about what is not.