Construction Mortgage Solutions

Getting a mortgage to build your dream home can and should be a fun and exciting journey. Though construction mortgages can be a bit more complicated than purchase mortgages, the reward of getting exactly what you’ve always dreamed of is well worth it. Plus, with me taking care of all the details, your experience will be as comfortable as possible.

Let me handle the details, shoulder the stress, and worry about the specifics. I’ve done this hundreds of times. I’ll put your construction mortgage on my mind. You can focus on building your dream home.

Book an Appointment

Frequently Asked Questions

When should I consider renewing my mortgage?

You should consider renewing your mortgage when your current term is nearing its expiration date, typically within the last 120 days of your term. This allows you to explore new interest rates from various lenders. It’s a crucial time to review your financial goals, assess your current contract, and consult with me to determine the best option for your situation.

What happens at the end of my current mortgage term?

At the end of your current mortgage term, several options become available. You can choose to renew your mortgage with your existing lender or explore refinancing opportunities with different ones—a mortgage broker can help you decide. This is a critical time to reassess your financial goals, evaluate your current interest rate, and potentially negotiate better terms.

Can I switch lenders at mortgage renewal?

Yes, it’s possible to move your mortgage to another lender at renewal. However, it’s not guaranteed they’ll have better terms and conditions. When your current term ends, you can shop around and explore your options. While there are typically no costs associated with switching lenders at renewal, keep in mind that there may be penalties for breaking the mortgage before the renewal date.

What are the potential benefits of mortgage renewal?

Mortgage renewals offer several benefits:
  • If rates are lower at renewal, you can secure a new interest rate, potentially saving money on your mortgage payments. Keep in mind that the opposite is true if you renew in a higher-rate environment.
  • You can adjust the term length or amortization period to better align with your financial goals.
  • You can switch lenders to access better terms or new features.
  • You can reevaluate your mortgage in light of changing financial circumstances.

    What documents are required for the mortgage renewal process?

    The documents required for the mortgage renewal process may vary by lender and your individual circumstances. Typically, you’ll need to provide proof of income, a statement of your existing mortgage, and information about any outstanding debts or assets. Lenders may also request credit reports.

    Is it possible to make changes to the mortgage during renewal?

    Yes, it’s possible to make changes to your mortgage during renewal. These changes can include adjusting the interest rate, term length or even switching from a fixed-rate to a variable-rate mortgage, and vice versa. You can also consider making additional payments and altering the amortization period.

    How is the interest rate determined during mortgage renewal?

    Several factors determine the interest rate during mortgage renewal. The most significant influence is the current economic conditions, including the market interest rates set by the Bank of Canada. Your lender may also consider your credit score, financial stability, and the terms of your existing mortgage.

    What are the potential costs associated with mortgage renewal?

    There are typically no costs associated with mortgage renewal as long as the changes are made at your renewal date. If you decide to switch lenders, however, there may be a fee to discharge the mortgage from your existing lender.

    Can I pay off my mortgage early during the renewal term?

    When you’re mortgage is in a fixed contract, you can typically pay off an extra 15 to 20% per year without a penalty. If you switch lenders, the same is true. If you renew into an open mortgage, you can pay your entire mortgage off without a penalty.

    What happens if I miss the mortgage renewal deadline?

    If you miss the renewal deadline, many lenders will renew it to a six-month mortgage at a higher interest rate. If you switch lenders during those six months, there would be a penalty. But if you change mortgage products with that same lender during those six months, there typically wouldn’t be a penalty. If you want to switch lenders, you’ll have to wait for the six months to lapse to avoid a fee.

    How can I negotiate better terms during mortgage renewal?

    Negotiating better terms involves a few steps. Start by researching current interest rates and mortgage offers from various lenders. You can take this information to your current lender and express your intention to explore other options. This can often lead to a more competitive offer. Additionally, having strong credit and financial stability can improve your bargaining position. Keep in mind that when you work with me as your mortgage broker, I can negotiate these better terms on your behalf.

    Is mortgage insurance required during renewal?

    Mortgage insurance is typically not required during renewal if you’ve already gone through the initial approval process and obtained the necessary insurance. Mortgage insurance is generally mandatory for high-ratio mortgages where the down payment is less than 20% of the property’s value. Renewal involves renegotiating the terms of your existing mortgage, so if you’ve already met the insurance requirements, it doesn’t need to be reevaluated.

    Can I renew my mortgage if my financial situation has changed?

    Yes. In fact, mortgage renewal is an excellent opportunity to reevaluate your mortgage terms with your new financial situation in mind. If your income has decreased, for example, you can discuss different options with your current lender. Keep in mind that if you want to switch lenders, you’ll have to re-qualify. So, a negative change in your financial situation may make re-qualification more complicated than a positive change.

    Should I consider refinancing instead of renewing my mortgage?

    Refinancing involves replacing your existing mortgage with a new one, often with different terms or lenders. This can be a wise choice if you need to access home equity. Renewing, on the other hand, is an update to your contract, potentially with the same lender. However, you can also transfer your agreement to a new lender with better terms. This option is beneficial if you want to maintain the existing loan structure and don’t want to borrow more money.

    Why a Construction Mortgage? Because You Have Big Dreams

    Unlike mortgage renewals that can be used for large-scale renovations or secondary properties, a construction mortgage is intended for those who intend to design and create a brand-new dream home from the ground up. If you have big dreams, you’ll obviously have a bigger mortgage, but I’m here to ensure it doesn’t become a bloated one. In advance, I’ll walk you through the whole process and identify any areas we need to focus on. You’ll never be left guessing what to do next – besides, I’m happy to do the work!

    Read More

    Make Progress Towards Preapproval – and Digging the Foundations

    Many don’t know that financing a new build is a unique process, and not in the simplest way. I’ll keep it brief here, but know that there are two terms to your mortgage: the draw term and the end or completion term. Draw terms consist of scheduled, preauthorized payments to cover construction costs, but you won’t be receiving funds in advance (a separate mortgage or loan would be needed to buy the lot itself, for instance). The end term is the delivery of remaining funds that occurs once the home is complete.

    While there are many complexities and subprocesses to these terms, don’t let them stress you; I’ll be with you every step of the way to explain in layman’s terms and move things along. You’ll enjoy peace of mind in understanding the exact terms and conditions of your construction mortgage, painting a clearer picture than ever, and the day those shovels dig into the ground will come sooner than you might expect.

    15 Years of Practical Experience

    I’ve been fortunate enough to help many homeowners secure construction mortgages over the years, covering all types of builds including DIY jobs, general contracting, and even prebuilds. Understanding everything you need to do, without feeling overwhelmed and while I shoulder the stress, is key. That way, you benefit from a more comfortable, simplified experience. At the same time, my lender connections can be your saving grace – I’m proud to have established and maintained many warm relationships with over 40 of them including major financial institutions, securing you the best rates in the quickest possible timeframe.

    Get in Touch

    Getting a mortgage doesn’t need to be a source of stress and anxiety. Connect with me to learn how I can make your mortgage a comfy one.
    Contact Me

    Your mortgage should be on my mind.

    Book an Appointment
    Are you ready to will your dream home into reality? Let’s make it happen in a stress-free, informed, and comfortable manner. Get in touch today, and I’ll gladly get to work for you.