Construction and Major Renovation Mortgages
Have you found the perfect location on which to build your dream home? A construction mortgage is a special type of mortgage designed specifically for this type of situation. Used to finance the construction or the building of a home, this is a smart way to build the home you want, where you want.
Building your own home is an attractive and popular option, but it can be difficult to arrange financing, especially when you are already paying a mortgage on your current home. Here at Ottawa Mortgage Market, we understand that there are many reasons to build or renovate, and we have a variety of borrowing solutions to help make it all happen.
How Construction Mortgages Work
Typically, throughout the building process, you pay interest on the loan. Simultaneously, the builder receives incremental payments as the work progresses. Once the construction is complete, the construction loan must be paid. At this stage, your construction mortgage becomes a traditional home mortgage.
Construction mortgages are ideal for situations where you own a lot on which you wish to build a home, or in pre-construction scenarios where the builder expects incremental payments as the home is being completed. When purchasing a new home where the builder has their own financing, you do not need a construction loan, but rather a conventional mortgage.
Major Renovation Mortgages & Loans
Perhaps the home you purchased has good bones but requires major renovations. Or maybe you’re buying a home to renovate and flip. There are a variety of options to help you finance these major renovations.
In some cases, a lender may approve a construction mortgage for major renovation. In certain instances, it may be as easy as obtaining a Home Equity Line of Credit (HELOC). Guaranteed by your home, a HELOC is one of the easiest types of financing to obtain, and you’ll enjoy reasonable interest rates.
For others, a major renovation may mean refinancing. A “cash-out refinance” is an opportunity to tap the equity in your home to pay off other debt at the same time or put it to use in other ways.
There is also the possibility of a simple home equity loan to pay for your renovations if you have no other need to access the equity in your home for other purposes.
These types of major renovation financing can be based on the value of your home once the renovations are completed, which frees up cash more easily.
For those who do not have significant home equity to tap into through a HELOC or refinance, there are additional avenues available to secure major renovation financing. We can help you to choose the best solution that works with your particular financial situation and is structured to meet your specific needs
Call Ottawa Mortgage Market today to schedule a consultation with one of our mortgage experts. We’ll help you get the financing you need to build your net worth and the year-round enjoyment of a vacation property.
Contact Us Today
Whatever your situation, Ottawa Mortgage Market can make your experience with mortgage financing stress-free. Whether you’re new to home buying or looking to put your home’s equity to work for you, the team at Ottawa Mortgage Market has solutions to get the job done, with the utmost comfort and transparency.
