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Commercial construction lenders in Whitby, ON

If you're thinking about building your dream home in Whitby, ON, or if you’re a home builder looking for commercial construction lenders we can help. In this guide, we'll cover everything you need to know about commercial construction lenders in Whitby, including how they work, what you need to qualify, and where to find the best deals.

What is a Whitby Commercial Construction lender?

A commercial construction lender is a type of lender that specializes in financing commercial project Unlike traditional mortgages, commercial construction lenders are not paid out in a lump sum. Instead, they are disbursed in installments as the construction project progresses.

The disbursement schedule is typically based on specific milestones, such as the completion of the foundation, framing, or roofing. The lender will inspect the construction site at each milestone to ensure that the work has been completed according to the plans and specifications.

Commercial construction lenders usually have higher interest rates than traditional mortgages because they are considered riskier by lenders. The risk comes from the fact that construction projects can be delayed or go over budget, which can lead to the lender being stuck with an unfinished or unsellable property. Private lenders which offer commercial construction lenders will focus more on the security (the property) as opposed to the cashflow of the building or the borrowers credit. Private commercial loans have now become very popular as banks don’t seem to be as interested in commercial construction lenders as they were before. 

Why choose our mortgage office?

If you are tired of dealing with banks and not getting the financing support you need, we can offer you the best construction lenders. Our commercial construction lenders in Whitby, ON are competitive and they support many home builders and developers. Our commercial lenders also have advanced methods to quickly fast-track the approval process. As a bonus, our mortgage lenders do not have any credit score, income, or presale requirements. The rates are generally higher that traditional banks but the lending guidelines are more feasible for most home builders and developers since banks are showing less and less interest in financing commercial construction project or regular construction projects in general.

If your project is denied financial support by the bank or if you want to complete more projects faster, we are at your service to help you. Call (888)878-4660 and chat with us for an expert opinion about your project.

We are confident that when you connect with us, we can help to remove all headaches and hassles to get you the money to start your construction or development project as soon as possible. Feel free to visit our construction lender website which shows in more details our private construction lender solutions for home builders and developers in Whitby ON. The website is: www.ezconstructioncapital.com

Our mortgage office specializes in getting the right construction lenders for your projects in Whitby, ON. We have years of experience working with builders and developers and we understand the challenges that you may be facing with traditional lending.

When you choose our mortgage office you can expect:

• Flexible eligibility requirements
• Personalized service
• Expert advice & guidance
• Experience construction mortgage agent
• Fast construction approvals

In Canada, a construction draw mortgage is a popular financing option for builders and developers. This type of mortgage loan releases funds to the borrower at different stages of the construction process.

Typically, a construction draw mortgage is divided into three draws:

1. First Draw (Weather Tight): This draw is given when the construction reaches the "weather-tight" stage, which means the building has a roof, windows, and exterior doors that can keep out the weather. The borrower can use this draw to pay for the completion of the exterior of the home, such as the foundation, framing, roofing, and exterior finishes.
2. Second Draw (Sheetrock Ready): The second draw is issued when the construction reaches the "sheetrock ready" stage, meaning the interior walls are ready for drywall installation. This draw is meant to cover the costs associated with completing the interior of the home, such as insulation, electrical work, plumbing, and drywall.
3. Final Draw (98% or 100% Complete): The final draw is given when the construction project is either 98% or 100% complete, depending on the lender's policies. This draw is intended to cover the remaining costs of the project, such as landscaping, paving, and final finishes.

During the construction period, the borrower pays interest only on the funds that have been drawn from the construction draw mortgage, not on the entire loan amount. However, the interest rate for a construction draw mortgage is generally higher than for a standard mortgage loan due to the higher risk associated with construction projects. The lender may also conduct inspections of the construction site to ensure that the work has been completed before releasing each draw.

Below is a list of words that are associated with getting a construction lender. We are providing you the list along with their definitions to help you in your construction journey:

1. Closing disclosure: a document that outlines the final terms of a mortgage loan, including the interest rate, closing costs, and other fees.
2. Mortgage broker: a middleman who helps borrowers find and apply for mortgages, typically by working with a network of lenders.
3. Disbursement: the process of releasing funds from a construction loan to pay for materials, labor, and other expenses.
4. Contingency fund: a reserve of money set aside to cover unexpected expenses that may arise during the construction process.
5. Mortgage: a loan secured by real estate, usually used to purchase a home or other property.
6. Equity: the difference between the value of a property and the amount of money owed on any outstanding loans.
7. Construction-to-permanent loan: a type of mortgage that allows borrowers to finance both the construction and the long-term financing of a new home or other real estate project.
8. Building permit: a document issued by a local government agency that authorizes the construction of a new building or renovation of an existing structure.
9. Zoning laws: regulations that dictate how land can be used in a given area, typically set by local governments.
10. Construction contingency: a reserve of funds set aside in case of unexpected expenses that may arise during the construction process.
11. Appraisal: an estimate of the value of a property, typically done by a professional appraiser.
12. Title insurance: insurance that protects the lender and/or the homeowner against any title defects or disputes that may arise.
13. Closing costs: the fees associated with finalizing a mortgage or real estate transaction, including things like appraisal fees, title insurance, and attorney fees.
14. Lien: a legal claim against a property, usually filed by a creditor who is owed money by the property owner.
15. Interest-only loan: a type of loan in which the borrower only pays interest for a set period of time, with the principal due at the end of the loan term.
16. Construction lien waiver: a document signed by a contractor or subcontractor that waives their right to file a lien against a property in exchange for payment for their services.
17. Punch list: a list of final tasks that need to be completed before a construction project can be considered fully finished.
18. Balloon payment: a large, one-time payment due at the end of a loan term, typically used in conjunction with interest-only loans or other non-traditional mortgage products.
19. Retainage: a portion of a construction payment that is withheld until the project is complete, typically used as a form of security against any potential defects or delays.
20. Construction contract: a legal agreement between a property owner and a contractor that outlines the terms and conditions of a construction project.
21. Construction loan: a short-term loan used to finance the construction of a new home or other real estate project. 
22. Architect: a professional who designs buildings and oversees their construction.
23. Loan-to-value ratio: a comparison of the amount of money borrowed to the value of the property being purchased.
24. Title search: a process in which a title company reviews public records to ensure that there are no outstanding liens or other claims against a property