A construction mortgage is a loan borrowed to finance the construction of a home and typically only interest is paid during the construction period. Once the construction is over, the loan amount becomes due and it becomes a normal mortgage. The money is advanced incrementally during construction, as construction progresses. Construction mortgage may be sought as a way to better ensure that most – if not all – construction costs are covered on time, usually preventing delays in the completion of the home.
Construction Mortgage
WIN MIC provides construction mortgages to complete the project.Product Features
| Mortgage Type | 1st or 2nd Mortgages |
| Borrower Qualifications | Builder or Developer |
| Maximum LTV | 75% |
| Lending Areas | Alberta & Manitoba |
| Minimum Beacon | None |
| Max Mortgage | $500,000.00 |
| Income | Employment & Stated Income |
| GDS/ TDS | NONE – deal must make sense |
| Purpose | Spec or Owner build – Builder to have established New Home Warranty |
| Term | 1-2 years (closed) |
| Draws | Flexible as required – Lot , Lockup, Drywall, Completion as a general guide |
| Interest Rate | 11.99% to 14.99% (case to case basis) |
| Lender Fee | 3% or MIN $1,000.00 |
| Broker Fee | Broker Fee can be Topped up upto Max 1% LTV |
| Documentation Fee | $550.00 |
| Appraisal | Required – Appraisal must be ordered from WINmic approved appraisers only |