Construction and Residential loans in Toronto, ON

Bank and Institutional financing

If you are looking to build or renovate we got some of the best financing products available on the market today. Terms include the following:

  • Up TO 80% of the completed future value.
  • First advance up to 80% of the as is/ or land value.
  • The entire loan amount is fixed at the 5 year fixed discounted rate. It is not floating at prime plus 1 until completion.
  • Interest only payments are required during construction, and converts to principal and interest upon completion.
  • Lender will advance subsequent draws as work is completed. Lender will hold back the cost to complete the home and advance the portion that is complete less a 10% hold back.

Private construction mortgage

If you won’t qualify for a bank mortgage, or the circumstance won’t make sense to get a bank mortgage, for example if there is a large penalty to break your current 1st mortgage, then a private mortgage from a private lender is an option. A private lender can go in 2nd position therefore there may be no need to break your mortgage. Terms are more flexible then the banks, mainly they won’t require the same income confirmation that the bank requires. Indeed private money is more expensive, but construction is a short process usually, so the plan is always to refinance once the home is complete and pay off the private lender. Therefore in most situations a private loan is needed for no longer then 6-18 months. In addition, the private lender can capitalize the interest payments into the loan .

Builders and Developers

Blue Chip Mortgage Corporation deals with several builders and developers construction offering unique builder financing programs to meet all your needs. Whether you are a large scale condo and home builder with presales or, or building a few on speculation, our construction loans are well structured to suit your requirements and get the job done to completion.

Other residential mortgage services include: Home Purchase Mortgage | Mortgage Refinance | Reverse Chip Mortgage | Home Equity Line of Credit | Construction And Residential Loans

Contact our mortgage brokers at Blue Chip Mortgage Corporation in Toronto, ON, for more information about Construction and Residential loans >>