I am looking at buying a new construction home. What type of products do you offer?
Two types of builder mortgage products are available to build a home. A draw mortgage (or progress draw) and completion mortgage.
Read moreFAQ Category: Building
What is the difference between a draw mortgage and a completion mortgage?
The key difference between a draw mortgage and a completion mortgage is when the funds are disbursed. A draw mortgage releases funds in stages throughout […]
Read moreHow can I stay in my current house while I am building my new one?
Some people can qualify to stay in their current home while building their new home. This will have to be approved by the lender. This […]
Read moreAfter the first draw, can I change the terms and conditions of the mortgage?
Once the first draw is finalized, the mortgage can not be changed. No unauthorized upgrades can be added.
Read moreIf my draw mortgage has been approved as an insured mortgage, but I can now afford an uninsured (conventional) mortgage, what happens to the insurance premium?
As the mortgage was approved as an insured mortgage, you will still have to pay the original mortgage premium to the insurer, as this is […]
Read moreCan I port my existing mortgage to a new construction mortgage to eliminate or reduce prepayment charges?
For completion mortgages, you must return to your existing lender with a new mortgage to maintain the portability features. The new mortgage must be fully […]
Read moreCan I have a land draw if I already own the land?
Land draws are subject to approval for conventional mortgages when the land is being purchased, has been purchased, and is free and clear, or if […]
Read moreWhat is the minimum percentage lenders will fund final advance on?
Lenders will only fund if the house is 100% complete (less 3% allowance for seasonal holdbacks.) This means that the house can be completed to […]
Read moreHow long do I have to build?
Generally, there is no set amount of time. Typically at the 1 year mark, the mortgage will go into repayment and regular mortgage payments need […]
Read moreOn a progress draw mortgage, do I pay interest on the whole amount I want to borrow or just what I have borrowed so far?
You only pay interest on the amount you have actually borrowed. Your monthly interest payments will increase as your home progresses and you borrow more.
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