Building Your Home

Construction mortgages allow you to obtain draws during the construction in order to pay your contractors and keep the project moving along. There is quite a bit more planning and paperwork needed than in a regular purchase or in the case of a purchase from a builder. In addition to standard income and down payment documents we will also require a copy of the deed or offer to purchase for the lot, copies of plans or blueprints, a detailed summary of your construction costs ( often supported by quotes from contractors) as well as your building permit, and a copy of your builders risk insurance policy. Once the plans and estimates are received an appraisal to determine the final value will be required. If you already own the land it is considered part of your equity and we can access typically 50% of the value of this for start up costs. You will  also require some additional savings, or access to funds, to get you to the first draw stage.

If you are purchasing a home directly from a builder or contractor then you won't require a construction mortgage as the funds are not required until the house is complete. If you buy the land yourself and then hire a general contractor or plan to contract out the build yourself this will be considered a self-build.  In this case you will require multiple draws to complete the build. Building a home can be a great way to get the house you want and if you are able to do some of the work yourself. It's a great way to build equity by saving on labour costs.