Construction Loan

A construction loan is a perfect solution to get the money you will need to pay for the building materials, labour, and other related expenses. Construction loan lenders charge higher interest rates than long-term mortgage loans that people take out to purchase homes.  When you borrow money through a loan, the lender will release the funds through a series of advances in synch with the progress of the construction.  A borrower will begin to pay back the loan sometimes within six months to 2 years after he gets the loan. 

Advantages of a Construction Loan 

• Although banks will require you to furnish them with the specific plans for your project, constructions loans are much more flexible with their terms and guidelines compared to traditional loans. 
• Since you don’t have to pay out the loan in full until the new construction is complete, the bank will not ask you to start for the principal until then also.
• Construction loans have evolved over the years such that more and more borrowers are reaping their many benefits.  One of them is the advantage they can get if they avail of construction to permanent loan. 
• If you take this type of loan, the lender will demand a deeper and closer look at how you plan to proceed with your project.  This is good for you because an independent party will scrutinize your plans to see if everything is in order. 
• If you qualify for a construction loan, you have the liberty to choose your architect and contractor and work with them to customize your home to meet your every want and need. 

Construction projects are costly whether it’s a renovation, expansion or a new home – you will need some funds to make it work.  A loan is a perfect solution to get the money you will need to pay for the building materials, labour, and other related expenses. At Ensure Mortgage, we can help you find out what kind of loan you could qualify for. Call us or contact us for more info