NDura Home Financing Process
FINANCING
You have the option to arrange your own construction and conventional mortgage financing. If you choose this route, we’re happy to assist by providing your bank with any necessary information. Alternatively, you can benefit from our expertise and connections—many of our past clients have opted to work with lenders in our network, who offer highly competitive interest rates and closing costs.
CMHC
As an investor, optimizing returns while aligning with sustainable and affordable housing goals is key. CMHC’s MLI Select program offers extended amortizations, reduced premiums, and preferential terms tailored to support multi-family projects. Partnering with NDura Developments means more than just building – we guide you through the financing process to help you qualify for this program, ensuring your investment meets CMHC criteria while staying on budget and ahead of schedule. With our proven track record in multi-family developments, we’re here to help you secure exceptional returns with confidence.
FINANCING OPTIONS
The following is a general overview of the home financing process. Please note that not all lenders provide every program, and many have unique requirements for their financing options.
LAND PURCHASE & PAYOFF
The purchase price of land or a building lot can often be included, partially or fully, in your construction and permanent mortgage financing. If you haven’t purchased land yet, obtaining pre-qualification is a smart step to help budget for your land acquisition. If you already own land, any equity you’ve built may be applied toward your down payment. However, the balance of the land loan must be paid off at the time of construction loan closing, provided the equity aligns with the lender’s appraisal. If there is an existing mortgage on the land, arrangements must be made to fully pay it off before construction begins. Since every lender has unique requirements, we’re happy to work directly with them to ensure a smooth process.
DOWN PAYMENTS
Down Payments may be made with your own funds, equity in your land (provided the lender's appraisal supports it) or a gift from a relative. Many RRSP plans allow you to borrow the down payment for a home. Conventional and Construction Draw Mortgages typically require from 20% to 25% of the total cost to build down prior to start of construction. The down payment amount varies depending on your creditworthiness and the availability of Private Mortgage Insurance. A large portion of the down payment is collected by the builder in trust and will be used to get your project started and to the first draw.
CONSTRUCTION & DRAW MORTGAGE LOANS
If you do not have the funds (or do not wish to use your funds) to build your home a Construction Loan will be required to help pay for costs during construction. Borrowers will need a separate Construction Loan which will be used to pay the builder at various stages of your home build. Upon construction completion, there will be a final draw payment that is paid to the builder. This is also when your mortgage lender will convert the mortgage into a conventional mortgage. We work with many Construction and Conventional mortgage lenders and will be happy to assist you in obtaining a low-cost construction loan.
CLOSING COSTS AND CONSTRUCTION LOAN INTEREST
Its important to budget for closing costs. These typically include the cost of property taxes, draw mortgage fees & interest, inspection fees, legal fee’s, registration fees, and survey fees.
LENDERS OUR CUSTOMERS HAVE USED:
CIBC
RATEFAIR
ATB
BMO
