Construction Mortgage Loan Services in Mississauga
Many factors go into buying a new home. As a buyer, you’ll want to familiarize yourself with all the terms that go into construction mortgages (or self-build mortgages). As we have decades of knowledge about mortgages and construction loans, our team at sMp Mortgage can assist you in determining what type of loan will fit best with your current situation.
What are construction mortgages?
Construction mortgages have two types of options available. The first is a progress draw construction loan. This type of loan is distributed to you during the stages of construction. Typically, there are three different times during the construction process where you will receive money: 35-40% completion, 65-70% completion, and when the project is complete. An appraiser verifies each stage of completion with a progress report.
The second type of construction mortgage is one for newly constructed homes that have been bought by a builder. Money is only needed at one stage, which is when the house is complete. However, a down payment is still required, and it can be paid through installments.
If you are unsure how to navigate a construction loan, leave it to the professionals. Our expert team at sMp Mortgages has been successful at helping our customers receive construction loans during their home buying process. We have relationships with various lenders in Canada and can find you the best rates and terms. These lenders offer loans for all types of projects, whether it’s building a custom home or project, or land development projects.
What do you need to know when finding a construction loan?
No matter what home project you are undertaking, there are various factors you will need to take into account for finding a construction loan. First, you’ll want to do a detailed assessment of your builder or contractor. You will want to see what kind of warranties they offer, the kind of work they have done, and the support they will provide after your home is sold.
You’ll also want to check the home model to see if the builder has adequate skills and attention to each detail. Be sure to analyze the plans carefully and make sure that nothing was missed.
Lastly, you will need to get a written warranty and read it thoroughly. It’s essential to know what is covered and to inquire about what is not.
At sMp Mortgages, we have been through this process many times with our clients and know how to get approval with the most competitive rates. Because of our established connections with the best Canadian lenders, we can provide our customers with various construction loan options to meet financial needs, as well as answer any questions throughout the process. We work with you directly to anticipate what is going to work for you and give you the customization that works for any project.
We know how vital saving money is when you undertake any project, and we understand how to reduce your costs. When you work with us, we will also figure out what kind of payment schedule will suit you best, or suggest other types of loans, if required. Since we are experts in loans and mortgages, we can help you best determine what loan will work for your circumstances.
Building a new home should be a fun and exciting project without having to worry about every little thing. We give you peace of mind by providing you with flexible repayment options, as well as low-interest costs.
Find a Construction Loan
If you think that a construction loan is going to work best for your project, get in touch with the team at SMP Mortgages today, and we can speak to you about your needs. To get started working with us, give us a call at 1-844-MY-PLAN, or you can also fill out the contact form on our website to find out more information.
We look forward to working with you to find a construction loan that best suits the needs of your project!