Calgary Licensed Mortgage Broker
Construction mortgages are a type of loan used to finance the construction of a new home. The loan is typically secured by the property itself, which means that if the borrower defaults on the loan, the lender can foreclose on the property.
Whether you are building one home, multiple units or have a construction project that is stalled I have a variety of solutions for you.
When building a primary residence the qualifying requirements vary depending on whether you are buying a home direct from the builder who is covering the costs up to completion or in need of a draw mortgage as the build progresses.
For investors building for the purpose of selling the requirements are different and the options depend on the project feasibility and investors ability to carry the project through the build and sale.
A mortgage pre-approval is so important to ensure that you are buying within your purchasing ability. There is nothing worse than having your heart set on a home that ultimately you cannot qualify for the mortgage to buy. A critical part of the pre-approval is ensuring you have all of your documents ready, down payment in place, taxes filed, taxes paid, and income verification documents. Finally when it comes to the actual mortgage ensure you consider the terms of the mortgage and not just the rate. Different lenders have different terms and saving a little on rate could cost you way more in the long run due to a term in the mortgage you did not understand, realize or expect to get in the way of your future.