Construction loan – When looking for a construction loan broker in the Greater Toronto Area should know that not all brokerage firms are considered equal, especially when considering the type of loan that they are after.
Construction loans are a very specialized area of the mortgage market, and at OE Mortgage, we have specialists in the field who know exactly what it takes to find the best possible deal on a construction loan. We have an extensive experience and are uniquely positioned to work with, and assist borrowers who are considering obtaining new construction loans.
We understand our clients’ needs, and we do everything possible to ensure that they get the funding for everything from a custom home to a major land development and construction project, from renovation to demolition and rebuilding, at terms that they can manage.
At OE Mortgage, our number one priority is to always find you the perfect loan product for your needs. So, before embarking on building your first new home or tackling that first major renovation project, we want you to know everything that you can about the special considerations involved in construction loans.
To begin, potential home builders should know that there are typically two major kinds of construction loans:
1. Progress Draw Mortgage: With this kind of loan, the money required for the build is disbursed
to the homeowner as the construction progresses. In most Progress Draw Mortgages, there are
three phases of completion – the 35-40 percent phase, the 65-70 percent phase, and the 100
percent completed phase. At the end of each stage, verification of completion is provided by an
appraiser who completes a progress report.
2. Completion Mortgage: This kind of loan usually only applies to homes that have been newly
constructed and are being purchased directly from the builder. This means that you will only
need to make a payment when the home is fully finished; although, you will still likely be
required to make a down payment, which can be paid in installments.
No matter what kind of construction loan you are looking for, the construction loan specialists at OE Mortgage can provide you with a sound, professional and objective advice that will help you get your build started on the right foot with the right mortgage broker. Richmond Hill and Greater Toronto Area residents.
Call 1-855-327-9079 if you are ready to get started on building the home of your dreams.
We bring personal and affective approch to our every clients