If you’re looking to build your dream home, the biggest tip is to speak to a mortgage specialist first.
It’s essential to get that approval before starting the construction. Many providers, like RBC, don’t want to start a construction mortgage if that build has already begun. So it’s looking at doing all your homework, obviously having all your plans in place, finding who’s going to build that home and then coming to see a mortgage specialist and then go through the actual application process and seeing what that maximum is you’re able to qualify you for.
So even if you don’t think you’ll need a mortgage, go and talk to the bank first. Put something in place. Because if you go at the end when you’ve run out of money, you’re going to be out of luck,
You can choose when to cap that mortgage through the building process. Often, clients feel that they don’t need a mortgage at the end of it. But then, as you start to look at those finishes and those end products, before you know it, some people have taken their finishing costs, sometimes up another 40,000, 50,000, 60,000, depending on how elaborate it is.
Because most people build their dream home, it’s their dream home, so they don’t want to do it again. They want to make sure it’s what they need today and potentially what they will need in the future.
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