A construction mortgage can provide the financing you need to create the custom home you’ve been dreaming about. Jason Anbara works with multiple financial lenders that provide construction mortgage financing. We ensure you’re getting the best deal possible and that your project will be a success.
In Canada, there are generally two types of construction mortgage options available for those looking to build a new home or complete significant renovations on an existing home: a construction mortgage and a completion mortgage.
A construction mortgage is designed to provide funding to cover the cost of building a new home. You would pay interest only on the funds that have been advanced, and once construction is complete, the mortgage can be converted into a traditional mortgage.
A completion mortgage is intended for clients who have already completed the construction of their new home or significant renovations to an existing home. With this type of mortgage, the lender provides a lump sum payment at the time of completion.
Construction mortgage rates can vary depending on a number of factors, such as the lender, the borrower’s creditworthiness, the amount being borrowed, and the length of the mortgage term. Generally, construction mortgage rates tend to be higher than traditional mortgage rates due to the increased risk associated with lending money for a construction project. The average construction mortgage rate can range from 3.25% to 5.5% for a variable rate mortgage and 4.25% to 6.5% for a fixed rate mortgage.
We’ll walk you through the commercial mortgage process with precision so you can secure a loan that can ultimately help grow your business.
Before applying for a construction mortgage, we recommend determining your budget and how much you can afford to borrow. This will depend on factors such as your income, expenses, and the cost of the construction project.
We will review our network of over 67 lenders to connect with those that specialize in construction mortgages. From there, we’ll ensure they suit your needs based on the information you have provided to us.
After we have researched and found a few options, we’ll help you narrow down the lenders to help you submit your application, which will typically require detailed plans and cost estimates for the construction project.
Once your application is submitted, the lender will review your information and provide you with pre-approval for the construction mortgage. This will give you an idea of how much you can borrow and the terms of the loan.
At this point, the loan will be finalized. The lender will then provide you with the funds to cover the cost of the construction project, which will be disbursed in stages as the project progresses.
Don’t wait when it comes to building your dream home. Jason Anbara can help you with construction mortgages in Canada and transitioning to a permanent mortgage once the project is complete.