OMG Mortgage Capital can help you with construction loans. Whether you are planning to build hotels or townhomes, plazas, or condominiums, we are the team that you need.
An informed customer is our best client. That’s why we’ve put together this beginner’s guide for these types of loans.
A construction loan is specific. This type of financing gets used for different reasons including:
- Building on a newly purchased parcel of land.
- Renovating or building a custom home.
- Building a commercial project like an industrial plaza or a medical building.
There are a few other things that you should know. For example, one of these loans will not give you the total value of the mortgage upfront. You’ll need to achieve specific milestones as the project moves along to receive more money.
The rates for these loans are generally higher than with more traditional mortgages. These are also called draw mortgages. The lender provides financing during certain milestones. The money gets used to pay for supplies and contractors.
Some lenders will give the funds to your lawyer who then disperses them to contractors. Other financial institutions might decide to deal directly with the contractor. Keep in mind that you’ll need to have a budget and or construction plan.
Construction costs can vary depending on the type of home or building you want.
For example, in Toronto, the general cost per square foot is $115-$900. The average home size in that city is 2,380 ft.². That means the total building costs can be anywhere from $273, 700 to $2142,000.
OMJ Mortgage Capital specializes in custom home construction loans across the GTA. Some of the advantages of using our services include the fact we deal directly with an institution’s decision-makers. What’s more, our fees and rates are always industry competitive.
