Construction loans can be used to renovate or modify an existing home or build a new one. There are a number of benefits to taking out a construction loan, but you can always talk to a mortgage broker about your best options.
Construction Loans are Short Term
One of the main benefits of construction loans is that they are short term. Construction loans ensure that you get the funds when you need them and while the term is flexible, it’s usually short enough that significant interest does not accrue.
Construction Loans are Advanced in Multiple Draws
Construction loans are advanced in multiple draws at measured completion markers. The benefit of this added structure is that you make payments only on the money that has been provided rather than the entire amount. As a result, you can expect a more clear and detailed timeline as the mortgage lender will need to review your plans for construction beforehand.
Low Initial Payments with a Construction Loan
Construction loans are often paid interest only during construction. In addition, the payments made on advancements help to keep costs as low as possible during the construction process.
Construction Loans Give You Control
With the added financial padding of a construction loan, you can decide exactly what you want out of your home renovation. The loan can help you bring your ideas to life; whether you’re building or renovating, you can play a part in designing the home you’ve always wanted.
Construction Loans are Set Rate Loans
The interest rates for a construction loan or a home renovation loan are generally a fixed rate. The ability to budget for loan payments based on set-interest rates can be helpful during the loan-repayment process.
If you are looking to build a new home or renovate the one you already have, it will be helpful to consider a construction loan. If you have trouble getting approved for a bank loan, an alternative mortgage lender can get you the loan you need and in the right timeline.
Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email email@example.com.