What to Look for When Considering Construction Mortgage Lenders in Toronto
Construction mortgage lenders in Toronto can be the answer to a home builder’s needs, or a homeowner that’s trying to obtain financing when building their own home. But, there are many construction mortgage lenders in Toronto. How do you know that you’re dealing with the right one for you? Here are a few things to look for.
A professional website
Visit the website of any and all construction mortgage lenders in Toronto that you are considering asking for a construction loan. Be wary of any site where “Apply Now!” and “Obtain Pre-Approval!” are the focus; it’s likely that these lenders are just trying to get your contract so that they can charge you high interest rates. Even if not, they probably won’t be the best you’ll find in customer service, as this advertising indicates that they are more interested in making money than they are helping their clients. Instead, look for construction mortgage lenders in Toronto that have taken the time to include helpful and useful information about construction financing, and what you’ll need to apply for a loan. Of course, an area where you can apply online is useful, but it shouldn’t be the lender’s main message to you.
Verify FSCO licensing
FSCO stands for the Financial Services Commission of Ontario and all construction mortgage lenders in Toronto needs to be licensed with them. Visit the FSCO website to verify that they are and if so, proceed with finding out whether or not they’re the best lender for you.
Ask about the properties they finance
It’s going to do you no good to begin working with a construction mortgage lender for your residential property only to find out a few steps in that they only deal with commercial construction mortgages or industrial construction mortgages. Save yourself a lot of time, and ask about this right away.
Ask about past construction financing projects they’ve worked on
Construction mortgage lenders in Toronto should be more than willing to give you the names of a few financing projects they’ve worked on – especially if they’re large, public buildings. Ask your lender if they can provide you with the names of these projects. If not, ask them if they can at least provide references. If it’s not possible for you to call their past clients (which it may not be,) ask if they can have the reference contact you. This should never be a problem.
Google them
Google can be a consumer’s best friend these days, and that’s no different when you’re searching for construction mortgage lenders in Toronto. Entering the lender’s name in Google and performing a quick search will bring up testimonials and reviews of the company; and word of mouth is one of the best assets you have when trying to find construction mortgage lenders in Toronto.
These are just a few of the things you’ll need to consider when trying to find the right construction mortgage lender for you; and you’ll most likely have your own list of requirements that you have out of your mortgage lender. But when you’re just starting out on the path of finding one, these tips will give you a great head start!
Bryan J is the author of this article. For more information about Secured line of credit or Mortgage Toronto please visit canadianmortgagesinc.ca.
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