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Hi,
It’s exciting to have a home built for you. If you really want to build a home rather than buying an existing home, you can go for a construction mortgage. But, you need to know the different type of construction mortgages available.
The two type of home construction mortgages in Canada are:
1. Construction-to-permanent: You borrow to pay for construction. When you move in, the lender converts the loan balance into a permanent mortgage. It’s two loans in one.
During the construction phase, you pay interest only on the outstanding balance. The lender converts the construction loan into a permanent mortgage after the contractor finishes building the home.
2. Stand-alone construction: Your first loan pays for construction. When you move in, you get a mortgage to pay off the construction debt. It’s two separate loans.
A stand-alone construction loan can work out well if it allows you to make a smaller down payment.
Some disadvantages are:
1. You pay for two closings and two sets of fees — first, on the construction loan; second, on the permanent mortgage.
2. You can’t lock a maximum mortgage rate. If rates rise during construction, you might have to pay a higher-than-expected interest rate on the permanent loan.
You can choose the type according to your needs and conditions.
It’s exciting to have a home built for you. If you really want to build a home rather than buying an existing home, you can go for a construction mortgage. But, you need to know the different type of construction mortgages available.
The two type of home construction mortgages in Canada are:
1. Construction-to-permanent: You borrow to pay for construction. When you move in, the lender converts the loan balance into a permanent mortgage. It’s two loans in one.
During the construction phase, you pay interest only on the outstanding balance. The lender converts the construction loan into a permanent mortgage after the contractor finishes building the home.
2. Stand-alone construction: Your first loan pays for construction. When you move in, you get a mortgage to pay off the construction debt. It’s two separate loans.
A stand-alone construction loan can work out well if it allows you to make a smaller down payment.
Some disadvantages are:
1. You pay for two closings and two sets of fees — first, on the construction loan; second, on the permanent mortgage.
2. You can’t lock a maximum mortgage rate. If rates rise during construction, you might have to pay a higher-than-expected interest rate on the permanent loan.
You can choose the type according to your needs and conditions.
Hi,
My friend is planning a family trip to Barbados in February. He wants to know more about the facilities for the stay. In my search, I came across a Barbados accommodation and I would like to know more about their booking facilities and rates.
I heard, the ocean view apartments can accommodate 2/4 people and can increase that to 6. There is also the top floor luxury suites which have 3 bedrooms. Next option would be a garden room — effectively a lock off to the Ocean View apartments.
Then the Park apartments. Some have small pools in the garden, some have roof pools. So, it seems to have enough facilities. Hope it is the best I could suggest him. If you have experienced a stay, kindly let me know the rate and the facilities. Or else if any other suggestions, share it too. Thanks in advance!
My friend is planning a family trip to Barbados in February. He wants to know more about the facilities for the stay. In my search, I came across a Barbados accommodation and I would like to know more about their booking facilities and rates.
I heard, the ocean view apartments can accommodate 2/4 people and can increase that to 6. There is also the top floor luxury suites which have 3 bedrooms. Next option would be a garden room — effectively a lock off to the Ocean View apartments.
Then the Park apartments. Some have small pools in the garden, some have roof pools. So, it seems to have enough facilities. Hope it is the best I could suggest him. If you have experienced a stay, kindly let me know the rate and the facilities. Or else if any other suggestions, share it too. Thanks in advance!