JESSE BRUN

Saint John Home Construction Loans available to builders, developers, and Property Owners.

Saint John home construction loans are done for different types of projects. Saint John home construction loans can be used for single family dwellings, multi-units, apartment building, condo’s, etc. When it comes to getting a home construction loan in Saint John NB the approval requirements can differ depending on who is applying for the construction loan and for what kind of project.

For instance, a home builder or developer in Saint John NB is likely going to need to have home builder insurance in order to secure financing while an individual building their own home will not if the individual is applying with a regular bank. In today’s market, many builders and developers are using private financing/lenders when seeking home construction loans for their construction projects because the approval process with traditional banks can be lengthy and most times impossible to achieve during the construction or development phase.

When getting a home construction loan in Saint John NB from an institutional lender or a bank, the property typically needs to be free and clear of any encumbrances in order to make the financing work. To be more specific, most bank construction loans require first mortgage position against the property and in very rare cases will they be prepared to work in a second position, and then only if the first position is for a very small amount.

Another aspect of securing a Saint John home construction loan from a bank is that in almost all cases the bank or institutional lender will require that you also apply for the take out mortgage that will pay out the home construction loan when the project is completed.

Where cost of financing isn’t the primary concern of the borrower, private mortgage financing has become a very poplar type of home construction loan in Saint John and all over Canada and the US.

While private construction financing does cost more, it does provide a number of benefits such as a much faster application and approval process, and more streamlined and predictable draw process, and the lack of need for most cases to be approved for take-out financing before being approved for a home construction loan.

If you need to secure a home construction loan in Saint John or anywhere in New Brunswick, give me a call at 1(888)878-4660 so I can go through your situation with you and explain to you your best options for your situation. I look forward to helping you finish your projects.

Jesse
1(888)878-4660
Mortgage Specialist