Can not find your dream home in the Market, well it may mean building it from the ground up…Literally…
There are so many wonderful options for this type of mortgage, meeting a variety of builder needs.
Builder Completion Mortgage
These build mortgages require mortgage financing to be completed at the end of the build, prior to possession. Depending on the length of build, rate holds are provided so that you and your builder know that during the build process you would approval from beginning to end for your new purchase. Most of these can be done with 5% min down , but it can depend on your builder with some wanting a min of 10% down. Neat part about these mortgages is once you get your possession letter your mortgage product can be revisited to make sure we have you in the right mortgage for when you close.
Builder Draw Mortgage
These mortgages require funding at several stages during the building process. The good thing about this type of mortgage product is your interest rate and product are set at first draw. Meaning the higher rates usually provided for completion builds does not come into play here. Most builders will cover the cost associated with the draws, but make sure you ask and check.
These types of mortgages can be tricky and require more work to complete and more paper work to be provided. If you are thinking about a Self Build please contact me to figure out your “Out of the Box” options.
Purchase Plus Improvements
These types of mortgages allow you to still purchase that home you want and add financing to the mortgage for those changes in the property you wish to complete. It is a more efficient solution than adding a 2ed mortgage, especially if you know the Home Improvements you want to complete when you get possession of your new property.
It requires a bit more paper work, as you have to get contractor quotes or material quotes (if you are doing yourself) and those have to be sent to the lender with all other documentation for approval. You may also have to have temporary monies in place to pay your contractor if they are wanting to be paid in sections as the lender will not pay for the improvements till everything is complete. However, some contractors when they know how the funds are coming are ok with this as long as a letter from the lawyer is provided.
Need to add the info here
Rate hold 9 months
Rate hold 12 months
Rate hold 18 months