Building your dream home could be one of the most rewarding experiences you ever undertake. So how can you finance building your own home?
A self-build mortgage is exactly what it says, a loan you secure to finance building your own house. With a self-build mortgage the money is released in instalments, typically with an initial loan to buy the land. Payments are then made at different stages of the build.
The key to a successful build is to understand the steps involved, and to follow through with the many details involved in building a home. From the first idea to the finished project, planning ensures you have your bases covered.
Single Family Pre-Construction Homes typically fall into three categories: .
Self-Build Home is when you act as your own contractor; hiring subcontractors to complete the work. Your mortgage options are: Progress Draw Mortgage, Completion Mortgage
2. SELF-BUILD: BUILDER/ CONTRACTOR (Turn Key):
Self-Build: Builder/Contractor is sometimes referred to as Turn Key. This is when you enter into an agreement with a contractor to build your home. Typically, the builder will request Financing Draws. Your mortgage options are: Progress Draw Mortgage, Completion Mortgage. It’s important to choose a contractor that is reputable with a solid track record (resume) of previous projects.
3. BUYING FROM A BUILDER (Take-out):
Mortgages on newly constructed homes, town homes, condominiums. Client requires funds when the home is 100% complete (will require the final occupancy permit in place). We have a wide variety of mortgage products on our “shelf” that you can choose best suited to your own unique situation.