A Construction Mortgage in North Bay is available for homeowners, investors, builders, and developers.
We arrange fast and flexible construction loans in Ontario and British Columbia.
A few typical construction financing situations are:
- Firstly, you’ll finance the purchase of the land, then the construction.
- You own the land and require construction financing.
- Purchase and demolish an existing property, then build as intended.
- Sever or assemble land to build.
Firstly, you and your lender will agree on construction draws. This means that your lender will draw out funds as the build progresses. After each construction stage is complete, the lender will have a home inspection to verify progress and good workmanship. After the lender is comfortable with the work and progress, they will release the next draw. Most lenders will only charge you interest on funds advanced, others will charge you interest on the total loan amount. This means that you might be paying interest on money not in your possession. We’ll work with you to figure out all available options from multiple sources.
It’s prudent to allign yourself with an experienced and reputable builder. Some clients and lenders prefer working with a Tarion registered builder. Your lender will request a builder’s resume and information on previous projects.
Finance up to 75% of the land value, 100% of the hard costs, and 80% of the end value.
In most cases, you can pre-pay interest, known as an interest reserve.
Most lenders have an appetite for urban and infill projects, however, we work with lenders who entertain rural and remote locations.
Work with a trusted and experienced North Bay construction mortgage broker who will understand your needs as well as negotiate for you.
We’ll help you determine the cost-friendliest approach.
Contact us anytime for more information, no obligation!