Looking To Build Your Dream Home?
Not everyone wants to buy an existing house. Some people prefer to construct their brand new homes themselves. If you’re wondering if there’s a mortgage for building a house, the answer is: Yes! A construction draw mortgage allows you to draw down on the full amount of the mortgage at predetermined stages of the home construction. When securing the finances for an upcoming building project, you must apply for a construction loan, which can be a long and complicating process. Easy-Mortgage.ca Strategists will guide you throughout the process of securing a construction loan and prepare you accordingly.
How Does A Construction Mortgage Work?
Construction mortgages are given on a progress advance basis. The full amount that you need to borrow, in order to complete your construction, is given to you in “draws”. As you complete various levels of completion, the lender will advance subsequent draws. If you already own the land you want to build on, a first advance is available as equity take-out. If you have not yet bought the land, a first advance is available to assist you with the purchase of a vacant lot.
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