I am looking at buying a new construction home. What type of products do you offer?
What is a rate cap?
How can I stay in my current house while I am building my new one?
For peace of mind and in order to ensure you have more cash to work with, many applicants opt to sell prior to starting construction on the new home and reside in short-term rental accommodations or with other family members.
Can the interest rate cap be extended?
If my progress draw mortgage has been approved as an insured mortgage, but I can now afford an uninsured (conventional) mortgage, what happens to the insurance premium?
Is the land draw deducted from the 1st draw?
Can I have a land draw if I already own the land?
If property is 95-99% complete, will the lender treat as 100% complete? What is the minimum percentage lenders will fund final advance on?
Lenders will only fund if the house is 100% complete (less 3% allowance for seasonal holdbacks). This means that the house can be complete to 97% and the only thing that is not complete is something like siding or pouring the driveway. If this is the case, the lender will only fund 97% to the solicitor holding back the 3% until a final inspection advises the house is 100% complete.
After the first draw can I change the terms and conditions of the mortgage?
Can I port my existing mortgage to a New Construction Mortgage to eliminate or reduce prepayment charges?
For completion mortgages you must return to your existing lender with a new mortgage to maintain the portability features. The new mortgage must fully fund within 90 days of the old mortgage being paid out. Please note that conditions vary by lender, other qualifications may apply.
For progress draw mortgages, you have up to 90 days in order to maintain portability features. The first advance of the progress draw must be within 90 days, and the final advance of the completion mortgage must be within 12 months. The prepayment charge is paid upfront, and then refunded once the final completion mortgage is advanced.
How long do I have to build?
On a self-build mortgage do I pay interest on the whole amount I want to borrow or just what I have borrowed so far?
How does the Construction Lien Act affect my construction project and how is it handled during construction?
Home Buying FAQ
Can we make changes to the mortgage application, such as length of term, repayment frequency, etc., once the application has been submitted?
Is GST paid on a resale home?
What is an IAD or Interest Adjustment Date?
How much of a downpayment will I need?
What is the difference between High Ratio Mortgage Insurance and Mortgage Life Insurance?
When the mortgage lender pays the Property Taxes, how are payments calculated?
* Tax information consists of general comments only, for full details see the applicable legislation or review with your advisor.
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