Construction Loans

We Can Help You Fund Your Construction Project

Are you thinking about building your new home or office from the ground up? If so, then you should be prepared for a different application process than that of a traditional mortgage or loan. When securing the finances for an upcoming building project, you must apply for a construction loan, which can be a long and confusing process. In order to help you better understand construction loans, the experts at Clover Mortgage have put together this brief introduction.

Construction Loan:

Construction financing is a high-interest, short-term loan used to finance the construction costs of property building projects. There are two main types of construction financing currently used to fund real-estate construction.

Completion Mortgage:

A completion mortgage doesn’t require the borrower to pay the lender until construction is complete and they have access to the finished property.

With this option, you are not required to make any payments until you are given possession of the newly built property. Similarly, if you would like to upgrade or change the terms of your mortgage you are free to do so until 30 days before you gain access. On the other hand, if your financial situation changes for the worst during the building period, it could jeopardize your mortgage approval. It is best to avoid making any major financial decisions while you are waiting to receive the funding for your completion mortgage.

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Draw Mortgage:

A draw mortgage gives the borrower access to parts of the loan amount in increments throughout the building process. The first portion is optional when the project is 15% done. The second portion of the loan is given when the property if approximate around 40% complete. The third portion is given when the property is approximately 65% complete, and the fourth portion of the funds are provided when the property is approximately 85% complet. The final amount is funded once the project is finalized.

This option is beneficial because it allows the borrower to finance the construction upfront without having to worry about how to fund the building process. It also helps the builder stay on track because they must pass inspections before receiving each of the subsequent payments. This type of mortgage can be more expensive in the long run because the borrower must cover the cost of each inspection. You begin procuring interest on your loan as soon as you receive your first payment. You also don’t have the option to upgrade or change your loan terms once you accept your first payment.

Mortgage Affordability Calculator

Our Clover Mortgage Affordability Calculator can help you determine how much of a mortgage and property you can afford.

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You potentially qualify for a maximum mortgage of up to $0,00 or a maximum monthly mortgage payment of up to $0,00*

*This is not a pre-approval and not an approved mortgage quote. This is merely an estimated calculation based on a 39% maximum TDS and the maximum mortgage amount and maximum monthly mortgage payment that you might qualify for may vary depending on a variety of factors including, but not limited to, the loan to value, the credit scores and credit histories of all applicants, the income reported on official government filed tax documents, the location and condition of the property, and more. For a more precise quote, please contact Clover Mortgage by phone 416-674-6222 or by email at info@clovermortgage.ca

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Clover Mortgage Inc. has access to Ontario`s lowest rates

What yuo can affordability:

• Gross Household Mountly Income: $0
• Down Payment: $0
• Term: $0
• Interest Rate: $0
• Amortization: $0
• Heating: $0
• Property Taxes: $0
• Condo Fees: $0
• Total Monthly Debt: $0

Based on the numbers you entered above you can borrow a maximum of $0 which iresults in a pament of $0 per month.

CONTACT ME TODAY!

Steven Tulman steven@clovermortgage.ca 416-674-6222 77 City Centre, Suite 150 Mississauga, ON L5B 1M

When Should You Use Construction Financing?

Construction financing can be used by either individuals or companies to fund multiple different types of projects. Below are several common uses:

• Single home construction
• Sub-division or high-rise construction
• Commercial property projects
• Conversion or restoration developments
• Storefront Apartment construction

Whether you are looking to build a small family home, a townhouse or a big commercial building, the experienced, knowledgeable, and trusted construction mortgage agents at Clover Mortgage can help get you started today.