Doing a little work before you approach us to help you get a loan is important. A financial assessment should be at the top of your list. First, you’ll need to remember that the down payments are usually higher for these construction mortgages.

The funds can be provided simultaneously or in different phases throughout the construction process. Some lenders prefer to give the money and allocate draws after certain milestones. It depends on the lender and the deal that you can arrange.

Here’s an example: A banker or credit union might give out funds at 40% completion, 75% completion, and 100% completion. Keep in mind that lenders usually send out building inspectors to ensure that each milestone has been reached.

There are also what are called completion mortgages, which are part of your choices regarding custom home construction financing. Borrowers get the funds here after the property is entirely built. Submitting an offer to purchase one of these homes means you’ll need to make a down payment, which can be paid in different installments.

There’s also more risk involved with a new construction loan, so you must have your finances in order. Some lenders will ask for more documentation and stronger credit scores, and they will also take a good look at the builder you are using.

The lender’s appraiser will examine different metrics, including the land value, costs, and project plans. It’ll also examine the project’s overall value compared to other recently sold homes in the area. Get in touch today to learn more if you think one this financing might be right for you.

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What sets us apart from the competition is our commitment to providing tailored solutions that perfectly match your unique needs for construction loans. We are happy to share tips on preparing all necessary documentation, including contractor agreements, timelines, and project plans.

Payment Schedule

Understanding the payment schedule is another important aspect of custom home construction financing. As a commercial mortgage broker, we always suggest that people create a project timeline that details start and end dates. Allocating the money appropriately to have milestones with corresponding completion dates for the payment schedule is essential.

Custom home construction financing must also clearly define each construction phase, including electrical plumbing, framing, roofing, and, of course, the foundation.

The payment schedule needs to start with the initial deposit in detail and be drawn up with a schedule that breaks down the amounts and percentage of money allocated to each step.

Boutique Mortgage Broker

OMJ Mortgage Capital is a boutique mortgage broker company operating in the greater Toronto area. We can help with various requirements, including custom home construction financing. Contact us today, and remember to ask about our outstanding record of successfully funding loans for diverse property types.

Our team has exceptional previous banking experience and years of mortgage industry know-how. Our priority is always to surpass client expectations while helping each one of our valued customers achieve their financial goals.

Why not meet with one of our custom home construction experts today? We are looking forward to helping you get the money for your next project, whether you’re looking to start a commercial or residential building.

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