JESSE BRUN

As the city of St. Catharines continues to expand, many home builders and home developers are looking for alternative construction financing companies to finance their projects since traditional banks have strict guidelines compared to alternative construction financing companies. In this article, we will take at how alternative construction financing companies in St. Catharines, ON can help you finance your next construction project.

Construction Financing companies in St. Catharines, ON

Alternative construction financing companies are also known as private construction lenders. Not all private lenders specialize in construction financing but some do. Most private lenders will work with reputable mortgage agents that help with the construction financing process. The construction financing is typically broken down into several disbursements, which are made at specific stages of the construction process. There are several construction financing companies(private construction lenders) in St. Catharines ON. 

Why choose our mortgage office in order to get construction financing from the best private construction financing company?

If you are tired of dealing with banks and not getting the financing support you need, we work with the best construction lenders in St. Catharines ON. Our construction lenders in St. Catharines, ON are competitive and they support many home builders and developers. Our lenders also have advanced methods to quickly fast-track the approval process. As a bonus, our lenders do not have any credit score, income, or presale requirements.

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. If you have money problems for your profitable projects, we have solutions.

Feel free to visit our construction loan website which shows in more details our private construction lender solutions for home builders and developers in St. Catharines ON. The website is: www.ezconstructioncapital.com

Our mortgage office specializes in providing bad credit construction loans in St. Catharines, ON. We have years of experience working with individuals who have bad credit, and we understand the challenges that you may be facing.

When you choose our mortgage office for your bad credit construction loan, you can expect:

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

Why Choose Our Mortgage office?

At our mortgage office, we understand that choosing a financing company can be a daunting task. That's why we strive to make the process as simple and straightforward as possible. When you choose our mortgage office, you'll benefit from our years of experience in the industry and our commitment to customer service.

We offer a variety of financing options to help you achieve your goals, and we work closely with our clients to ensure that they get the financing solution that works for them. Whether you need a home equity loan, a construction mortgage, or a renovation loan, we can help you find the right financing solution for your needs.

A construction draw mortgage is structured to release funds to the borrower in stages, as construction progresses. Here's a brief explanation on how a construction draw mortgage typically works in Canada using 3 draws:

1. First Draw: The first draw is issued when the construction project reaches the "weather-tight" stage, which means the building has a roof, windows, and exterior doors that can keep out the weather. This draw is intended to cover the costs associated with completing the exterior of the home, such as the foundation, framing, roofing, and exterior finishes.
2. Second Draw: The second draw is issued when the construction project reaches the "sheetrock ready" stage, which means the interior walls have been framed and are ready for drywall installation. This draw is intended to cover the costs associated with completing the interior of the home, such as insulation, electrical work, plumbing, and drywall.
3. Final Draw: The final draw is issued when the construction project is 100% complete, depending on the lender's policies. This draw is intended to cover the remaining costs associated with the completion of the project, such as landscaping, paving, and final finishes.

In general, the borrower will only pay interest on the funds that have been drawn from the construction draw mortgage, rather than on the entire loan amount. This can help to keep monthly payments lower during the construction period. However, it's important to note that the interest rate on a construction draw mortgage is typically higher than on a standard mortgage loan, due to the increased risk associated with construction projects. The lender may also require periodic inspections of the construction site to verify that the work has been completed before releasing each draw.

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

1. Certificate of occupancy: a document issued by a local government agency that certifies that a newly constructed building meets all local building codes and is safe for occupancy.
2. Construction contract: a legal agreement between a property owner and a contractor that outlines the terms and conditions of a construction project.
3. Disbursement: the process of releasing funds from a construction loan to pay for materials, labor, and other expenses.
4. Closing disclosure: a document that outlines the final terms of a mortgage loan, including the interest rate, closing costs, and other fees.
5. Loan-to-value ratio: a comparison of the amount of money borrowed to the value of the property being purchased.
6. 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.
7. Lien: a legal claim against a property, usually filed by a creditor who is owed money by the property owner.
8. 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.
9. 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.
10. Building permit: a document issued by a local government agency that authorizes the construction of a new building or renovation of an existing structure.
11. Equity: the difference between the value of a property and the amount of money owed on any outstanding loans.
12. Draw schedule: a timeline of when and how much money will be disbursed during the construction process, usually based on certain milestones being met.
13. Builder's risk insurance: insurance that protects against damage or loss during the construction process.
14. Zoning laws: regulations that dictate how land can be used in a given area, typically set by local governments.
15. Closing costs: the fees associated with finalizing a mortgage or real estate transaction, including things like appraisal fees, title insurance, and attorney fees.
16. Inspection: a process in which a professional inspector examines a property to ensure that it meets all relevant safety codes and standards.
17. 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.
18. Loan origination: the process of applying for and obtaining a mortgage loan.
19. Escrow: a financial account held by a third party, typically used to hold funds for property taxes, insurance, and other expenses.
20. Homeowner's insurance: insurance that protects against damage to a home or other property, typically required by lenders as a condition of a mortgage loan.
21. 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
22. Subcontractor: a professional hired by a contractor to perform specific tasks, such as electrical or plumbing work.
23. Construction contingency: a reserve of funds set aside in case of unexpected expenses that may arise during the construction process.
24. Mortgage broker: a middleman who helps borrowers find and apply for mortgages, typically by working with a network of lenders.
25. Appraisal: an estimate of the value of a property, typically done by a professional appraiser.
26. Title insurance: insurance that protects the lender and/or the homeowner against any title defects or disputes that may arise.
27. Certificate of substantial completion: a document issued by a project manager or inspector that certifies that a construction project has been completed to a certain degree.
28. Blueprints: detailed plans for a construction project, typically drawn up by an architect or engineer.
29. Loan servicing: the process of collecting loan payments, managing escrow accounts, and other administrative tasks related to mortgage loans