New Construction & Custom Homes

You've come to the right place. Not only can we align you with builders and get you better access, but we can ensure they offer assignments on units.

Assignment provides you with the right or ability to transfer your purchase and sale agreement to another party as the new buyer. 

This generally comes at a cost ranging from $2,000 - $5,000. Not all builders allow for this. 

An example - you purchase a new build in January of 2020 on a condo to be completed 2023 for $450,000. 2 years later, in 2022, those condos are now valued at $550,000. Instead of waiting for the closing and incurring all closing costs/realtor fees on selling the unit, one could seek to assign before closing the $450,000 sale agreement and an assignment premium of $100,000 to a new buyer. 

Your builder will require verification of mortgage approval, which we are happy to complete and provide for you. 

This will still be conditional upon credit and income qualification.

Just like buying a resale home, ensure you are fully pre-approved before viewing any properties or future units available for sale.

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Simple answer - yes. 

The build site will generally have an agreement "on-site" financing options available with one of the five major banks. But (and it's a big but) those rates are nowhere near present best market rates. This means a 1-2% premium, thus only being relevant should the market of interest rates substantially increase before your closing rate. In our 14 years of experience, a client rarely executes the initial rate hold that was obtained by the builder. 

Opting to work with us, we'll instead hold the rates 120 days out. We'll also provide you with a lender comparison report to ensure you are getting the best mortgage for your needs. 

Closing date delays frequently happen, but are nothing to be alarmed about given the numerous factors influencing your closing date.

Notify us immediately of any extensions or variances to your closing date, including purchase price, and we'll update and extend your approval along with your rate hold. 

Unlike a resale home that would be listed on MLS, providing photos verifying the condition and completion of the house, your new build is just that, a new build. Therefore lenders use appraisal companies to mitigate risk, check the property is 100% complete and confirm occupancy ready. 

The approximate cost is $350. If a high ratio (meaning less than 20% down), this cost will be included and covered by CMHC. If 20% down or higher, a full appraisal is generally required.

We've answered this and other top facts to know when buying a new condo here.

We've answered this in detail here. 

With a construction mortgage, you have a mortgage amount that you can draw funding down from during predetermined construction stages. These mortgages are issued on a progress advance basis. The amount is based on how much you need to complete the home. This amount is given to you at certain stages, or draws, which are various completion levels. For example, the second draw tends to happen at 65% completion, or just before drywalling is put up.

Should you own the land that the home is being constructed on, you can use this as equity for the first financial advance. If the land has not been purchased yet, this first advance can be made available to you to help you with purchasing a vacant lot of land.

Homes Built By a Contractor With Your Funds

In this situation you have a customer entering into an agreement with a registered builder to build their home. The builder will then require a Financing Draw. The financing options available in these situations are a Completion Mortgage or Progress Draw. Your Burlington mortgage broker will advise you on these options.

Self Constructed Home

This is a situation where the customer is building their own home, or acting as their own contractor. They will hire out sub-contractors for specialty work, such as electricians or plumbers. The same financing options are available as with homes being built by a contractor.

Builder Constructed Home Using Their Funds

These are situations where a builder pays to construct a building, for example, a condominium, townhouse, or new construction home and then sells that completed home to a buyer. The financing option for this is a Completion Mortgage.

Completion Mortgage

When you are buying a newly constructed home that a builder has paid for and constructed, you only need funding upon completion of the home. This is basically a traditional residential mortgage.

Progress Draw Mortgage

With this financing option, funding is advanced at intervals as the house is being constructed. There are usually 3 draws, one at 35% completion, one at 65% completion, and 100% at total completion. If the customer is also buying land then a conventional Land Draw may be needed. A Progress Draw also requires the involvement of a solicitor.

This is pretty standard to what any Burlington mortgage broker requires for a traditional mortgage; proof of identity, confirmation of income and employment, proof of equity, and quote copies if the home will be self-built. You may also need a signed contract with the builder you have chosen, a copy of the title if you already own the home and any land registry information. Lastly, a full appraisal, insurance certificate, and a House and Plans Specification will be needed.