Construction Mortgages.

DV Capital works with homeowners, real estate investors and custom home builders seeking construction financing options. Once you factor in the time and energy required, the land, labour, material, and soft and hard costs, construction financing requires capital, planning, and a reasonable and experienced funding partner. While each situation differs, they typically resemble one of the following situations. Note that loan-to-cost and loan-to-value ratio requirements vary based on project details.

Client Owns A Property: Demolish + Rebuild:  The client currently owns a property they plan to demolish and rebuild. Accordingly, we will assess the property location, the value of the land, the details and balances of any existing mortgages, the cost to build the new home, which generally relates to the square feet and quality of finishings, and the value of the completed property once built. Using this information, we can determine the amount of existing equity, the loan-to-cost ratio and the loan-to-value ratio, the two main ratios used by construction mortgage lenders to assess feasibility, risk and profit. Although, in most cases, we can finance up to 100% of the construction hard costs, our client may need to inject capital into the project. 

Client is Purchasing a Property: Demolish + Rebuilt or Build on Vacant Lot: The client is interested in purchasing a property with an existing structure they intend on demolishing or a vacant lot to build a property on. If the client purchases the property without a mortgage, there will be more equity, thus potentially attracting more financing options than if a mortgage was present, possibly at lower rates. However, if the client requires a mortgage to help purchase the property, we can assist them with a purchase + construction mortgage; this will be a two-parter. In most cases, the client must inject sufficient funds for the purchase and towards the total construction financing costs to satisfy construction lenders’ loan-to-value and loan-to-cost requirements.

Whether you are a homeowner, a real estate investor or developer who owns an existing property or wants to purchase a lot to build real estate, or a custom home builder seeking financing for a spec build before securing a purchaser, DV Capital is pleased to assist your construction financing requirements in Ontario, British Columbia and Nova Scotia.