JESSE BRUN

As the city of Toronto, ON continues to grow and develop, many home builders in Toronto ON are struggling to get home builder loans from traditional banks. That's where construction loans specially designed for home builders in Toronto ON can help.

If you’re a home builder in Toronto ON looking for a home builder’s loan it's important to understand that there might be alternative financing options available to you. There are mortgage solutions specially designed to help home builders and developers in Toronto ON finance their projects and meet the demand for new housing. Using these loans for home builder solutions can help maximize profits and keep your construction crews working.

When it comes to loans for home builders in Toronto ON our office uses private construction lenders that understand construction financing and understand that home builders can’t always provide proof of income or have pre-sales. Our construction financing solutions for home builders in Toronto ON are more based on the equity as opposed to credit ratings, cashflow or pre-sales. 

Why choose our mortgage company for a home builder mortgages in Toronto ON?

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

If your construction 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 the headaches and hassles to get you the money to start your construction 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 Toronto ON. The website is: www.ezconstructioncapital.com

Our mortgage office specializes in providing bad credit construction loans in Toronto, 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:

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

Our team of experienced mortgage professionals can answer any questions you have and provide expert advice on financing your new home construction project.

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. Closing costs: the fees associated with finalizing a mortgage or real estate transaction, including things like appraisal fees, title insurance, and attorney fees.
2. Lien: a legal claim against a property, usually filed by a creditor who is owed money by the property owner.
3. Mortgage broker: a middleman who helps borrowers find and apply for mortgages, typically by working with a network of lenders.
4. Contingency fund: a reserve of money set aside to cover unexpected expenses that may arise during the construction process.
5. Building permit: a document issued by a local government agency that authorizes the construction of a new building or renovation of an existing structure.
6. Architect: a professional who designs buildings and oversees their construction.
7. Construction loan: a short-term loan used to finance the construction of a new home or other real estate project.
8. Inspection: a process in which a professional inspector examines a property to ensure that it meets all relevant safety codes and standards.
9. Mortgage: a loan secured by real estate, usually used to purchase a home or other property.
10. Equity: the difference between the value of a property and the amount of money owed on any outstanding loans.
11. Draw schedule: a timeline of when and how much money will be disbursed during the construction process, usually based on certain milestones being met.
12. Appraisal: an estimate of the value of a property, typically done by a professional appraiser.
13. Blueprints: detailed plans for a construction project, typically drawn up by an architect or engineer.
14. Zoning laws: regulations that dictate how land can be used in a given area, typically set by local governments.
15. 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.
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. Title insurance: insurance that protects the lender and/or the homeowner against any title defects or disputes that may arise.
18. Closing disclosure: a document that outlines the final terms of a mortgage loan, including the interest rate, closing costs, and other fees.
19. Loan-to-value ratio: a comparison of the amount of money borrowed to the value of the property being purchased.
20. Subcontractor: a professional hired by a contractor to perform specific tasks, such as electrical or plumbing work.
21. 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.
22. Builder's risk insurance: insurance that protects against damage or loss during the construction process.
23. 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.
24. Construction contract: a legal agreement between a property owner and a contractor that outlines the terms and conditions of a construction project.
25. Disbursement: the process of releasing funds from a construction loan to pay for materials, labor, and other expenses.
26. Construction contingency: a reserve of funds set aside in case of unexpected expenses that may arise during the construction process.
27. Change order: a written document that outlines any changes to the original scope of a construction project, typically used to update project plans and budgets.
28. Surety bond: a type of insurance that guarantees that a construction project will be completed according to the terms of a contract.
29. 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.
30. Punch list: a list of final tasks that need to be completed before a construction project can be considered fully finished.

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 (Weather Tight): 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 (Sheetrock Ready): 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 (100% Complete): 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.