Those needing financing to construct a new home may be interested to know that Scotiabank has modified its Progress Draw Construction Mortgage.
Clients now get more time to complete construction. Homeowners were previously allowed 12 months to finish. Scotia now gives them 15 months. Payments are interest-only during the construction period to preserve cash flow. There is no more application fee.
When it comes to construction loans banks and other institutional lenders are very heavy on documentation and will only release money in stages which can be very frustration for the client. They also have deadlines as per above. If you don’t have proper paper work for income etc and need more flexibility private money may be your best option. It is quick with less hassle but more expensive.