Do you have a new construction home that you are carrying at higher interest rates? Are your showhome or spec properties tying up your credit or monthly overhead? MMG Mortgages specializes in Take-Out financing for home builders inventory. This also includes financing for land acquisition and draw mortgages for your clients
A Draw Mortgage is essential to the financing and construction of your new home. MMG Mortgages has developed an exclusive four or five step Draw Mortgage Program which will provide the best financing required for your project!
With draw financing through MMG Mortgages your disbursement and inspection expenses are taken care of. As your build progresses draws will be advanced at each construction stage. Before these funds are released to your solicitor, an inspection will be performed. There are expenses each time an inspection is completed, but these are taken care of for you by MMG Mortgages. Each draw is then advanced from your bank to the solicitor, and the solicitor must then release the funds to your builder.
Lastly, your appraisal expenses are taken care of by MMG Mortgages. Prior to each draw, an inspector will visit the property to ensure the building is progressing to the banks satisfaction.
Prior to each draw being advanced, an inspector will go to the property to ensure the builder is following the NHW (New Home Warranty) policies and to ensure each stage is completed with accuracy before releasing funds.
Draw Mortgage Holdbacks
The mortgage funds or draws that are advanced to the solicitor will have a 10% builder’s lien holdback. This protects you as it ensures no contractor liens are placed on your property during the construction phase.
Upgrades for Your New Home
At your initial meetings with your builder, you will likely be choosing plans for your new home and arranging a basic price point. In the months following this, you may decide to upgrade certain specifications in the home that are not part of your package price. In most cases, MMG Mortgages will have already completed your mortgage approval and you will have signed these documents with the solicitor.
This means you are not able to change your approved mortgage amount to accommodate any upgrades or changes made to the home. Therefore, we recommend you add an upgrade allowance to the base price of the home as a contingency to cover any shortfalls. Your builder will talk to you about this.
If you have not yet found your ideal location to build your dream home, we can help you finance that perfect lot or small acreage parcel. MMG Mortgages has the ability to include an initial draw advance in your mortgage financing to purchase your land. Ask us for more details.