Construction Loans

Construction loans are short-term loans that are used to fund the building of a home or other real estate project. Most banks offer variable construction loans with Interest only option. These loans typically have higher interest rates than traditional mortgages because its interest only and are paid back as in interest only instalments over the course of the construction period. 

The loan amount is based on the estimated value of the completed project, and the funds are disbursed as needed throughout the construction process. This allows you to pay for materials and Labor as the project progresses, rather than having to pay for everything up front. 

Once the construction is complete, the loan is typically converted into a standard home loan product (chosen at the time of application submission). 

In summary, construction loans are a great option for those looking to build their dream home. They provide access to funds throughout the construction process, making it easier to manage costs and stay on budget. Contact our Mortgage Broker to learn more about construction loans and how they can help you achieve your dream of homeownership.