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regardless of its purpose. We have solutions.

Developers and prospective home owners can benefit greatly from a construction loan from North Creek Financial. We offer several types of loans to finance your next project with land purchase loans, site development loans, building construction loans, construction bridge loans, condo inventory loans and long-term take out loans.

What Is Construction Loan

A construction loan is usually a short-term loan that provides the funding you need to cover the cost of rebuilding or renovating a property. However, there will be a higher interest rate compared to a traditional mortgage from a bank. The true benefit is that payment plans are customizable because you know best what and when you can afford to pay. The loans can range anywhere from $20,000 to $2,000,000 with funds provided in installments. To receive full funds, it will require two or three construction loan applications for a single project, but larger projects will often require four or five depending on the circumstance.

How It Works

New builds are not easy, and definitely not cheap. Most projects will require two or three of the construction loans outlined above, however depending on the size of the construction project and possible time constraints, it will usually require multiple lenders. However, North Creek Financial can fund all the loans you need without the headache of dealing with multiple lenders. Our professional and highly experienced brokerage has built relationships with reputable private lenders across the Greater Toronto Area with affordable rates so your build is completed on time and on budget. There are designate intervals in which you (the builder) can receive the funds and loan periods do not last longer than 1-2 years.

The application process is simple and can be completed within five minutes. All we require is the market value of your existing property and its outstanding balance(s) of the existing mortgage(s). North Creek Financial also never requires a credit check, proof of income or letter of employment because we qualify on a case-by-case basis. This is because we allow you to use what you own on your home as collateral to put towards the loan. Apply here today or call toll-free 1-800-566-0829 to be on your way to building your next home.

Banks Are Not The Answer

Bank are leery of lending towards a property that has not been built yet and requires several documents to establish trust with the financial institution. They also tend to want to inspect a property before the funds are provided. Banks reserve several provisions which include:

Bank are leery of lending towards a property that has not been built yet and requires several documents to establish trust with the financial institution. They also tend to want to inspect a property before the funds are provided. Banks reserve several provisions which include:

• Must have a qualified builder: Banks require a licensed general contractor with a minimum level of experience with a solid track record. This can be a difficult you yourself are the general contractor or in an owner/builder situation.
• Home value must be estimated by an appraiser: The bank will have an appraiser assess the blue book, specs of the house, and the value of the land the home will be built on. This involves comparing similar homes and their location as well as similar features/amenities. These are known as “comp” houses and the appraised value is dependent on these similar properties.
• Detailed Specifications: You must provide the bank with a detailed floor plan which go as far as outlining the height of the ceiling and the type of insulation that will be installed.
• Large Down Payment Required: Usually 20 percent is the minimum to put down for a construction loan, however, some lenders require 25 percent. This is because the bank needs insurance if the project is not completed. It also ensures the lender in the case of the quality of the finished build is not up to par and/or the layout deviates from the blue book submitted.