Many people would like to renovate their home or cottage, but do not have the money to complete the job. As mortgage brokers we work to provide solutions for your renovation and construction dreams. There are a number of ways that homeowners can use the equity in their home to fund renovation and construction costs. Please call for a free consultation on your construction project.
For all renovation and construction loans you need to provide the lender with detailed plans. In most cases the client will need building plans and a list of the contractors who will complete the work. Permits will be required to ensure that the work meets government standards. Larger and more expensive projects require more documentation and management.
You may need a loan to put a second floor on your home or an addition to the back of your home. In both cases you are increasing the value of your property. Most lenders look favorably on this type of mortgage since the increase in property value is usually greater than the amount of money being borrowed. For this type of mortgage most lenders pay out the funds upon the stages of job completion. This ensures that the money is directly going to the builder and not for any other purposes. Our mortgage brokers have helped many people make their renovation dreams come true and we can also help you.
Many home owners can use a first or second mortgage to pay for the renovation costs. There is also the option to use a private lender if the construction costs are fairly large. Banks usually do not provide money for construction and renovation loans unless there is a significant amount of security. Private lenders are a viable alternative to many traditional financial institutions. Our mortgage brokers can tell you in a short period of time if your loan will be approved and how long it will take for you to get the money.
Major demolition or construction of a property requires constant inspection by the lender. Money will be pay out to contractors as the work is completed. Final payments to all contractors will be pay when all permits have been approve by the local municipality.
Please call us for more information on construction loans.