Sometimes, homes that are on the market just don’t make the cut. The bedrooms are too cramped, there’s not enough sunlight, or perhaps the backyard is too small – whatever your circumstance might be, the best way to find your dream home could be to build it yourself.
Once you’ve decided that building your own custom home is the way you want to go, you need to think about the financials. Luckily, Interior Savings has a mortgage solution with these needs specifically in mind: the construction mortgage.
Who is the construction mortgage for?
If you already own a lot and you’re ready to start building your home, or are in the market to purchase a lot right now, or are about to embark on a large-scale renovation that will significantly raise the value of your home, a construction mortgage may be right for you.
Talk to one of our Mortgage Specialists at any time for more information.
How do construction mortgages differ from traditional mortgages?
When you purchase a mortgage for an existing home, you receive the full loan amount all at once. That’s not the case with construction mortgages, because at the time of the loan your home is inherently less valuable and a lender cannot accurately assess the risk of an empty lot.
Instead, construction mortgages provide the money you need in stage – in alignment with the process of your build. These stages are called draws. Typically, the stages at which your construction mortgage will kick in are:
- 1st draw: Lot purchase
- 2nd draw: At the subfloor or lock-up stage when framing, doors and windows are complete, and the home can be secured.
- 3rd draw: At the ¾ finished stage, when plumbing and electrical have been installed.
- Final draw: At completion
The advantages of an Interior Savings Construction Mortgage
Every financial institution has different parameters for their construction mortgage solutions. At Interior Savings, we offer financing for both short-term interim construction and larger projects with special features that include:
- Flat rate construction mortgage fees as low as $750*
- Option for 6-year terms
- 12 months of interest-only to reduce your costs as you build your home
- Flexible number of draws (unlike other financial institutions that will often only allow a limit of three draws)
We also offer the services of our highly-experienced staff that know the ins and outs of the building process, have specialized knowledge about the local Okanagan (North, Central, South), Thompson, and Nicole service areas, and work hand-in-hand with builders. The best part? If your busy daily schedule doesn’t allow for in-branch appointments, the Interior Savings Mortgage Team will meet you wherever and whenever works best.
Let’s make your dream home a reality – the easy way. Ask our Mortgage specialists for the details today.
- Call us at 1-844-841-4663
- Or email us at mortgagepro@interiorsavings.com
- Or book an appointment at your closest branch