Taking Out a Construction Mortgage Canada
If you’ve been looking for the perfect home, and you haven’t been able to find a suitable option, you may want to consider building your own home. With a construction mortgage Canada, you can have contractors build a new home that’s exactly right for you. These types of loans can also be used to renovate a home.
What Can You Use a Construction Loan For?
If you already own a lot that’s zoned for building a home, you can use this mortgage to build a brand-new house. These loans can also be used to buy a new home from a builder that has lots available to sell.
Alternatively, you can use this loan to purchase a property that needs significant renovations or to renovate the home you currently live in. In the latter case, you may want to look into construction mortgages when refinancing your home.
What Can’t You Use a Construction Loan For?
A construction mortgage Can be used in a variety of ways, but there are still limits that you’ll want to be aware of. These limits can vary based on the lender you work with. For example, some lenders may not allow you to use one of these loans to fund the building of a condominium. Instead of making assumptions, it’s best to meet with different lenders so that you can find out more.
What Should You Know Before Applying for a Construction Mortgage Canada?
You should be aware that your mortgage may not cover the full cost of building your home. When you’re purchasing a pre-built home, many costs are fixed. When building a home, however, costs can rise over time. Some lenders may allow you to take out additional funds if the original loan that you received is not enough to cover all your costs, but this won’t always be a choice.
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