Mortgage Broker in North York, ON
A construction mortgage is a loan borrowed to finance the construction of a home, and typically only interest is paid during the construction period. In order to obtain construction financing, you need to have the building permits and plans. An appraisal will be ordered to figure out the “as is” and “as if finished” value and the total loan amount will be determined based on the “as if finished” value. Different lenders have different criteria for the Loan to Value as well as rates and fees.
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