Single-Family Construction Mortgages
Building your dream home is often 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. Single Family Pre-Construction Homes typically fall into three categories: .
SELF-BUILT HOME
Self-Build Home is when you act as your own contractor; hiring subcontractors to complete the work. Your mortgage options are Progress Draw Mortgage or Completion Mortgage.
SELF-BUILD: BUILDER/ CONTRACTOR
This is when you enter into an agreement with a contractor to build your home (sometimes referred to as Turn Key). Typically, the builder will request Financing Draws. Your mortgage options are: Progress Draw Mortgage or Completion Mortgage. It’s important to choose a contractor that is reputable with a solid track record of previous projects.
BUYING FROM A BUILDER
These are mortgages on newly constructed homes, town homes, condominiums. The client requires funds when the home is 100% complete (final occupancy permit in place). At PNW Mortgage, we have a wide variety of mortgage products that you we can offer, suited to your own unique situation.