New Home Construction

Building a New Home

Are you looking for some financing options to purchase and and build your dream home?

Sarah recently hosted a webinar for all of our agents about construction/new home mortgages. We do a lot of learning at The Place To Mortgage, so our team is always up to date and informed about options for our clients.

New Home Construction (build) mortgages are typically broken down into three stages:

  • Land Acquisition Financing which provides you with the funds to purchase the land and continue on to the planning stage.
  • Construction Financing which is typically in a number of individual “draws” so you can start to build and finish your dream home.
  • Take Out Financing, which is the final mortgage that you have that, replaces all the Land Acquisition and Construction Financing already obtained. This leaves you with one traditional mortgage on only the amount that you need at that time. Then you can plan your mortgage burning party!

At The Place To Mortgage we are very familiar with the nuances and pre-work required in order to start your planning to make your dream home become a reality. Construction  financing is unique and does require some additional paperwork and pre-planning, all of which we are more than happy to assist you with. We work with many lenders across Canada that truly understand what you want to accomplish with your new home build and as experts in Construction (build) mortgages, we look forward to assisting you.

Some Helpful Construction Tips

Sticking to a budget can be a challenge. Additional costs and budget overruns can add to the stress and take the fun out of building your dream home. Here are a few tips to stay on track!

  1. Have a realistic budget – lay the groundwork for your budget and stay committed through each phase of construction
  2. Have a detailed plan – having the blueprints is just the start, the more you can plan your finishing touches in advance the easier it will be to stay on budget
  3. Establish non-negotiables – knowing what you definitely want will help with what to splurge on and what to save for later
  4. Work with the right professionals – hire a reputable builder with a solid track record and they can help you stay on track
  5. Be realistic about the cost of each phase, and prepare to build in some padding for overruns

This is where we come in as mortgage professionals, we are here to help every homeowner with their best options for lenders and rates. Our brokers strive to stand out from the everyday mortgage lender and bank. Much more than mortgage professionals, we are always looking for ways to go above and beyond for our clients; offering ongoing strategies, programs and incentives to help ensure your home ownership goals and financial success.

Do not hesitate to call and our brokers can help you with your dream home construction options.