Construction Mortgages

A construction mortgage is a type of financing that is specifically designed to fund the construction of a new home or other real estate project. In Ontario, construction mortgages are often used by builders and developers to finance the construction of new homes, condos, or other properties.

Construction mortgages typically have different terms and requirements than traditional mortgages. For example, construction mortgages may require the borrower to provide a detailed construction plan and budget, as well as a schedule of construction milestones. The lender will usually release funds to the borrower in stages as the construction project progresses, rather than providing the full loan amount upfront.

If you are considering a construction mortgage in Ontario, it's a good idea to work with a mortgage broker or financial advisor who has experience with construction financing. They can help you understand the requirements and terms of a construction mortgage and find a lender that is willing to work with you. It's also important to carefully consider the risks and costs involved with construction financing, as building a new home can be a complex and expensive process.