“Building a home in Canada? We can be your foundation! Financing the construction of your dream home in Canada has never been easy once you ask our help…”
In order to design the home of your dreams and save money at the same time, you can always choose to build your home from the ground up. Whenever you are planning to build a home, you have to consider how to finance this big project. Since your home can be your biggest investment in life, this only means the need of taking out a huge amount of money from your wallet. If you do not have the budget, one loan option that a lot of people choose is the construction mortgage.
A construction mortgage refers to a loan utilized to finance the construction of a home. Normally, the money is released to the borrower in set amounts as every phase of the construction process is accomplished. Most construction mortgages include paying the interest within the construction period with whole repayment needed after the owner attained a certificate of occupancy.
Prior to approving a construction mortgage, lenders must initially have to know everything that will be involved in the home building. Among these things are the materials, blueprint, labor, costs as well as the time period it needs to completely build the home. Construction mortgages are typically variable-rate loans that are priced in accordance with the prime rate. The lender, contractor and the home builder will set the timetable for the withdrawal of funds in each phase of the construction process. Interests are being applied on the amount of money withdrawn. This series of withdrawal before each construction phase is accomplished is often perceived as economically advantageous and it aids to prevent any future funding issues.
To help you become entirely knowledge about the whole nature of construction mortgage, you can always learn to consider getting the help of a mortgage broker. Either you want to get your dream home built from the ground up or a renovation of its existing structure; a mortgage broker is completely knowledgeable in construction financing. With expertise, he can help you your desired dream home. Since approval of this type of custom loan is dependent upon a number of factors, it really helps to work with someone who understands the process.
Various Types of Construction Financing Loans
In speaking of attaining construction financing, it aids to know the various loan types available. Whether you are about to build a luxurious or simply a basic home in which your family can enjoy, it is essential to choose the appropriate financing type. If you want to know the most typical financing loans for building a home, read on below:
1. All-in One Construction Loan. A plain construction loan that offers one rate for both the process of construction and financing which comes at the end. This type of loan tends to be for a term of one year construction and it may sustain penalties once it goes over the time boundary.
2. Purchase Plus Improvement. This particular type of loan permits you to purchase a home which needs some tender loving care. It will take a couple of work in order to acquire contractor quotes and it is necessary to have a bit of momentary financing to perform the work as you get paid back at the end of the improvements. There are contractors that will proceed if your legal counsel attests in writing that the funds are available for completion.
Resourceful Capital Financial Corporation: Your Perfect Foundation in Building a Home
A lot of Canadians choose to build custom homes with exceptional features to fit their personal tastes and lifestyles. To help finance their homes, they opt to apply for a construction loan. At Resourceful Capital Financial Corporation, we can help you find the financing you need to build the custom home you dream of. We are the company ready to partner you in every step of building your dream home. Building your own home could be an exciting and creative experience, but without a partner, there is a big possibility that you will encounter complicated financial challenges.
This is definitely why we at Resourceful Capital Financial Corporation are here for you. Our mortgage specialists are always here to assist you gain in-depth knowledge of construction mortgages. Simply trust in us and we will give you the support you want from start to finish. We will guide you through the whole process and will elaborate all the essential facts you need to know such as:
- Designing your desired home together with an architect
- Administering the home construction costs
- Arranging the construction mortgage
- Attaining building permits
- Getting a reliable general contractor
- Building your home
We Have the Expertise to Get You Approved
Resourceful Capital Financial Corporation has the experience and expertise to construction mortgages in Ontario, Canada. We can shop for the top banks and lenders in your vicinity that can give you great mortgage rate. More than that, you have nothing to worry about paying us because our services are paid by the mortgage lender. The financial help you obtain can aid you in hiring a good architect, paying for your general contractor, paying for building permits and administering all aspects of the home construction. With our expert brokers, your application can be quickly approved along with a favorable interest rate.
Resourceful Capital Financial Corporation is very experienced when it comes to customized mortgage loans that specifically include construction mortgages. Our team can speedily shop the top banks and lenders and get approved with the appropriate mortgage for your financial requirements. You can have high hopes that we will answer all your questions regarding construction financing and will keep you updated throughout the entire process.
Accomplish your Application Now!
Once you are ready to start the application process, simply contact one of our mortgage professionals. If you are thinking that the application process involves rigorous tasks, think of it otherwise. It is far different than applying for a regular home loan. Additionally, mortgage application can be easy once you let us on your side. Aside from the typical financial information needed for the loan application, you will as well need to supply the following:
1. An authentic copy of construction agreement along with your builder that should denote the costs of your home involving the upgrades, the lot’s value and options.
2. The floor plan copy and if applicable, the façade of the house.
3. If possible, a deed to the lot.
4. If necessary, a land contract for the lot wherein your house will be constructed.
Rest assured that when mortgage lender receives all your documents, a decision will usually come within forty eight hours. Once your loan is approved, your lender will draft a document of loan commitment specifying the legal requirements and issues for your loan. You will get this document at closing. However, you will be given a sample of the document in order to review it in advance. At closing, you must have adequate money to cover the closing costs as well as the minimum down payment for your lot purchase.
Resource Capital Financial Corporation: Reliable, Simple and Effective
A lot of Canadian residents have already used our services for many times and we are happy they keep coming back for more. They depend on us for a variety of mortgage services and various custom loans.
Contact us today at 1-888-882-0786 in order to get started with your construction mortgage!