CONSTRUCTION FINANCING

FROM SINGLE CUSTOM HOUSES TO LARGE DEVELOPMENT & CONSTRUCTION PROJECTS!

Time is money! Fast, Easy, and Flexible financing is all that matters in any construction project. That is what we do!

Construction Project Financing

A construction mortgage is a short-term loan used for various property development purposes. Whether you are planning to build your own home or developed land to construct multiple residential, commercial or industrial building purposes, a construction loan can give you the funding needed to get your project started. Lenders and financing options vary based on the size of the project and the stage of land development. In some cases, you have to go through pre-construction sales before you secure financing, in other cases, you might need to go with private lenders or even look into equity financing (investors) rather than debt financing. At Mass Mortgage Group, we do it all.

Regardless of the size and type of your project, our team of construction financing expert, are able to arrange various construction financing program via major institutional lenders, credit unions, or private lenders.

Fixable and customizable construction Loans are available as soon as your project is ready to take off the ground and enter into the construction stage. Knowing development and construction projects are a rigid and time-consuming process, our team of experts works with you side by side to professionally consult, plan, and execute this vital step of your project from beginning to end in a very timely manner. Let our business relationship and our negotiation power work for you. Whether your project is going to be a rental building, commercial or residential low rise, high rise, or multi-unit dwellings leave the construction financing to our team and they will negotiate with various lenders on your behalf and bring you the best products that suit your needs, so you can focus on the other aspects of your development projects. Contact us and book a free consultation meeting to find out how our team is able to assist you to make the process more convenient.

Obtaining a construction mortgage is more complicated than traditional loans because they involve a higher risk to the lender. The lender will conduct comprehensive evaluations of the project at every construction phase to ensure that funds are only released for completed work and that sufficient funds remain to complete the project.

As experienced mortgage specialists, we understand the complexities of construction financing and can help you secure the funding you need to complete your project. We know the requirements and challenges of obtaining a construction loan, including creating detailed construction plans, accurate budget estimates, and evaluating your financial situation. We also work with a team of land experts who offer valuable guidance throughout the land acquisition process.

Construction loan for the single custom-made house:

Our team also are able to provide the single dwelling construction loan, the money required to build a single house, to the homeowner. These types of loans are granted as the construction progresses, meaning, construction loans are disbursed in stages as construction progresses. These payments are often referred to as draws and are released after each phase is completed and inspected. Traditional lenders such as major banks typically allow four draws, while alternative financing offers more flexibility. In general, the major banks release the money in 3 to 4 stages (each draw upon the completion of 35%, 60%, and 100%) The banks' qualification is also more sophisticated and required full income documentation.

How to avail a construction mortgage through private lenders?

While some major banks provide loans for construction purposes, yet, it is a rigorous process. As a result, the majority of experts in the building and construction industry prefer private construction financing since it is Fast, Easy and Flexible. Rather than Bank’s income verification approach, private lenders grant this loan based on the end value of the subject project so-called equity lending. With Construction Mortgage Loan, the money required to build the house is disbursed to the homeowner as Progress Draw Mortgage as well but with much more flexibility in terms of the number of draws in comparison to major banks to the extent that some of them will even advance the draw at a very early stage. In some cases, with the alternative lender, you have even the option to have a draw on the bare land or use the first draw towards purchasing land (subject to zoning and permit requirements). You only pay interest on the amount released and not on the entire sum. These types of lenders are also quite flexible with the loan amount and loan-to-value ratio and in most cases they are willing to entertain the loan amount up to 75% of the end Value of the project. (completion value). Upon completion, we can help he borrower to clear the amount in full or convert it into a conventional mortgage. Let our Mortgage Agents/Brokers take a look at your project and customize a Mortgage Solution that suits your needs. Give us a call to discuss this further!

Benefits of construction loans

Construction loans are disbursed in stages, which offers the advantage of paying interest only for the funds that have been released instead of the entire loan amount.
Payments made during disbursement stages help minimize costs during construction.
A construction loan can cover expenses such as land purchase, labour, materials, and permits/inspections, resulting in an efficient and well-planned financing solution for your building project.
A construction loan provides the financial capability to bring your vision to life, from building a dream home to adding an extra room or covering renovations.

Speak Today to one of Our Licensed Mortgage Agents/ Brokers In the Greater Toronto Area at (905) 707-9595

Mortgage Brokers/ Agents at MassMortgageGroup.com offers Commercial Solutions to clients across Thornhill, Vaughan, Scarborough, North York, Toronto, Newmarket, Richmond Hill, Aurora, and Markham, Ontario.

MassMortgageGroup.com provides Construction Mortgage Loan/ Mortgage Financing & other Mortgage Services to clients across Thornhill, Vaughan, Scarborough, North York, Toronto, Newmarket, Richmond Hill, Aurora, and Markham, Ontario.

Contact info@MassMortgageGroup.com - Mortgage Agents serving across Ontario