Oshawa construction loans can vary significantly from one type of project to another in terms of rates, loan to value, and the types of lenders that will be interested in the deal. This is one of the main benefits of working with a construction mortgage broker that services the local area and has access to both bank and private mortgage lenders that provide construction financing.
And regardless of the size or type of the project, almost all construction jobs are going to require two or more types of financing from the beginning to end of the project’s life cycle. So its also important to be working with someone that can coordinate the placement of funding and transition from one to the next.
Even in the case of a single family home self build, there can be an existing mortgage for land acquisition, followed by a construction build loan, and then completed with a long term take out mortgage that consolidates all the costs registered against the property into one mortgage.
For larger projects, there can be four or five different types of funding required depending on the size, scope, and phases of work and the capital required may have to come from both debt (loan) and equity (mezzanine) sources.
Within a project, you may require funding from both a private lender and a bank before its completed, requiring you to be able access both on a timely basis without putting the project behind schedule or over budget.
As an example, every once in a while a client has institutional financing lined up for a project but will require a private mortgage bridge loan near the end of work to cover off a cost over run, a change in scope, or perhaps some problem getting the final draw released from the institutional lender. In these cases the solution is a private mortgage construction bridge loan than can be put into place in a matter of days which keeps the project from stalling out and creating more costs or worse.
If you are seeking an Oshawa construction loan for a project you’re in the middle of or one you’re planning out, I recommend that you give me a call so I can quickly assess your requirements and provide relevant construction loan financing options for your consideration.