In the recent months, the new home market in Toronto has seen a significant spike with its highest ever rating since 1990. More homeowners are choosing to build their home instead of buying an already constructed home. Homeowners are not only able to make their dream homes a reality but they are also able to control the materials used, overall design, and other important decisions that go into building a home. The only challenge that most homeowners face in actualizing their dream is a lack of funding.
Most bank mortgages are designed to cater to pre-existing homes, leaving a gaping hole for homeowners who are looking for financing to construct their homes from scratch. It is understandable that banks would want to steer clear of construction projects given the numerous challenges that might arise.
With the hot construction condo market only expected to continue growing, lenders have had to find a way to help homeowners who would rather build their home than buy a readymade one. The result has been the construction mortgage in Torontothat is aimed towards providing financing for new construction homes.
Depending on the needs and stage of construction, there are a variety of options that borrowers can consider when opting for a construction loan. Mortgage Solutions Group offers a variety of options to allow homeowners to have the chance to build their dream home. Some of available options include the process-draw mortgage, which is a loan advancement at different stages of construction in three or four phases. Under this option, the current phase has to pass inspection before the next payment is dispatched. There is also the completion and combination mortgage options, both of which are also available to the borrower under the construction mortgage in Toronto.
As with any other loan, a review is conducted, which includes everything from the assets and debts to the income ratio of the borrower. In most cases, the lender will also request for a blueprint of the building. Subsequently, the lender may recommend a qualified contractor with a proven track record.
Once the home is completed, the borrower is expected to take out another loan, called a completion loan, which works the same way as the initial construction loan does. With your home complete, the lender now has sufficient leverage for the completion loan, which can be repaid over a longer period of time.
The residential construction field is providing up to 1.2 million jobs, which equals to over $73.6B in wages.ith four out five millennia’s looking to invest in a home, it is safe to say that the residential home construction industry has yet to have attained its peak. Construction loans are providing a practical alternative to willing home buyers to attain financing options for appropriate funding to build their own homes.
Just in the first quarter of 2018, there have been over 44,170 new houses constructed and over 240,000 new homes under construction. It is safe to say that construction mortgage loans in Toronto will be playing a very essential role in helping homeowners achieve the dream of building their own home.
Company Name: Mortgage Solutions Group
Contact Person: Media Relations
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Address:209 – 10376 Yonge Street
City: Richmond Hill
State: Ontario L4C 3B9