than you think
than you think
Specializing in builder mortgages
If you want to build the home of your dreams, a builder mortgage allows you to withdraw money in stages to pay the builder. Access the customization and flexibility you need to create the home of your dreams with convenient mortgage options.
If you’ve always had a vision of your dream home but couldn’t realize it in the city, a builder's mortgage is the perfect way to secure the funding you need to make it a reality.
The lower cost of undeveloped land can make it very desirable for those with a willingness to take matters into their own hands and build something from the ground up.
Strategies to consider for builder mortgages
Home equity loans allow you to borrow up to 80% of the appraised value of an existing property.
Instead of borrowing based on the value of the property, you could take a personal loan based on your income and credit score.
Instead of pursuing a mortgage for empty land, you could secure a standard mortgage with a mobile home. Ask us for details!
With seller financing comes the opportunity to purchase your land over time, alleviating some of the initial cost burden.
Overcome the hurdles
of builders' mortgages
The property you purchase must be appropriately zoned to qualify for a loan, but we can help you find this information and decide if the property is right for you.
Down payments and rates can be higher for builder mortgages than even second home or investment property mortgage due to the increased risk of the lender, but we can help you plan for the increased amount.
Existing services help alleviate some of the risk for lenders, but the right construction mortgage may also help address their concerns. We’ll explore all options to secure the best mortgage for your needs.
Sometimes known as land acquisition loans, these mortgages are used to purchase raw, residential land. They may require a larger down payment or higher interest rate as a result.
When you are looking to build a custom home, a construction mortgage may be the ideal solution, as they allow you to borrow money in stages as the project progresses.
When you want to customize your home, but pay out the builder in installments, a completion mortgage is ideal. These mortgages involve the taking an initial deposit to carry the property to completion.
Raw or undeveloped land is a great way to reconnect with nature while building something you can truly call your own. With the help of a qualified mortgage broker, you can realize your dreams and maintain a responsible budget.
Appraisal, legal and brokerage fees will typically apply, as will a land transfer tax.
Yes, down payments for vacant land are roughly five to seven times more than the same value of an existing residential property. This is due to the higher risk assumed by the lender.
Draw, or builder, mortgages provide several benefits, including a locked-in interest rate. They also protect all parties, as the builder doesn’t have to front the money for supplies, the buyer doesn’t have to pay a full mortgage amount immediately, and the lender assumes less risk.
These mortgage products can put additional strain on some families, as they will have to pay multiple mortgages concurrently. However, many find the trade-off in added customization worthwhile.
