Waterloo builder loans for professional builders or individuals doing self build projects are available through our bank and private mortgage construction financing sources.
For residential self build projects, we can arrange bank construction financing or private mortgage construction loans. Bank construction loans provide the best rates for residential construction projects, but they are also more difficult to qualify for and have a more extensive administration process to follow. Many builders will weigh the trade offs between cost and ease of use and opt for privately funded construction financing loans.
That being said, if you qualify for an institutional construction financing program, we are more than happy to help you through the twists and turns of bank construction loans. Here are just a few things to keep in mind. First, because of the equity requirements of a bank, its almost impossible to get a construction loan in place if there is any type of existing first mortgage against the property even if the amount is small. Second, you have to qualify for both the construction loan and the take out mortgage in self build situations before construction begins. If you can’t qualify for both, then the bank will not provide a Waterloo builder loan as their only reason for providing construction mortgages is to be able to secure the long term take out mortgage. Third, the bank or institutional draw process can be hard to manage at times with a certain level of unpredictability inherent in the process with respect to the timing and amount of draw advances. If you plan to go with institutional construction financing, make sure you have ready access to some contingency funds if draws are delayed or cut back.
That’s one of the benefits of working with our team is that we have a lot of experience in getting our clients through construction loans through our hands on approach to helping solve problems in the loan administration process if and when then arise.
If you’re in need of a Waterloo builder loan for a project you’re planning or one that you’re in the middle of, I recommend that you give me a call so I can assess your requirements and then discuss relevant builder loan options with you.