Construction Mortgage

Product details

• Customers receive funds at various stages of completion of the construction of a new owner occupied home

• A first advance is available to assist with the purchase of vacant land or as equity take-out when the lot is already owned (up to 65% of the property lending value of vacant land – uninsured only)

 Purpose

•    Customers purchasing land or requiring equity take-out on land for immediate construction of a principal residence or cottage and leisure home for their own personal use

•   Customers who already own their land and require funds to cover immediate construction costs prior to the first construction advance being available at the airtight stage

Term and Repayment

• 18 month term; construction must be completed within 15 months.

• Interest Only payments, variable rate (based on the amount advanced)

• The Term Start Date will be the date of the first advance. Customers will have a 15 month construction period from the date of the first advance to request advances up to authorized amount to ensure the construction is complete

• If the customer is unable to complete construction within 15 months, the current Progress Draw Construction Mortgage will be placed under repayment (the amount advanced to date is renewed) and the project is re-assessed. A new Progress Draw Construction Mortgage component may be set up for the remainder of the approved amount

Pricing

• Based on a floating rate of Prime plus 1.00%

• Customers may select any payment frequency during the Interest Only period

• Upon completion of construction and full advance of mortgage, option to early renew into a fixed rate or variable rate closed term mortgage greater than the remaining term without penalty