First of all, depending on the type of construction project you’re working on, there may be several different types of construction mortgage loans required through the life of your project, which may need to be provided by different lenders.
Even in the case of a self build residential property where the construction loan and the construction take out mortgage can be arranged through one lender, there could still be a need for a private mortgage construction bridge loan if everything in the project doesn’t go according to plan.
So if you’re in the Mississauga area planning a construction project or are smack in the middle of one where financing is or will be required, its important to be able to have access to both institutional and private mortgage financing options.
If you can qualify for bank financing for construction, this will also mean you will have to pre-qualify for a take out mortgage with the same bank or institutional lender as that’s the only way they are going to do construction financing on a residential property. The best approach to not only locating the suitable lender and getting the financing in place, and making sure the draws take place with the least amount of grief, and making sure that you have access to a contingency fund if required.. is to work with a construction mortgage broker that has experience with all the relevant sources of construction financing that can be required and the best sources that exist in the Mississauga area.
The same holds true for a construction financing project in that there could be multiple construction financing components from potentially both bank and non bank lending sources. So it makes a great deal of sense to make sure all your potential requirements can be covered off by one central point of contact versus having to figure out all the different stages and timing on your own.
Each regional area will have its mix of construction financing sources which will also vary by project type, size, and specific location. So a construction mortgage broker that works the area can be an invaluable resource to add to the list of things required to successfully complete your construction financing project.
If you’re seeking a source of Mississauga construction loans for all or part of a project you’re working on, give me a call so we can discuss your requirements together and go over different construction financing strategies that will meet your needs in the time you have to work with.