Mortgages  
 
 
 
 
     
     
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For further information or to discuss any of our products or services, please call (+1)-888-639-0006 or email
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  Construction Mortgages
    When building a home, funds are needed throughout the construction stages. With the Construction Mortgage, your loan may be drawn down in stages while making interest-only payments until construction is complete – letting you concentrate on finishing your home.
  
    Terms:
   
  • Open during construction
  • Interest rates fixed at final draw - terms same as conventional mortgage
  • 90-day rate guarantee
    Payment Options:  
   
  • Interest only during construction
  • On completion - weekly, semi-monthly, bi-weekly, monthly payment options available
 
    Pre-payment Options:  
   
  • 20/20 pre-payment:
    • Increase payments by 20% or pay up to 20% of original balance each year and pay off your mortgage faster!
  • Match/Miss payments:
    • Match one or more payments and miss one or more in future (skipped payments must equal earlier matched payment within term)
 
       
    Rates:  
    Prime Rate      
      Rate APR*    
    Prime 6.25% 6.25%    
    *For Annual Percentage Rate (APR), calculation assumes no fees have been charged.  
    Rates are subject to change without notice. For information and to confirm most recent rates, please contact any Kash Mart branch. Some restrictions apply.  
       
      Fixed Rate Mortgages  
   
  Open Term APR*
  6 months 8.55%
  1 year 9.20%
     
  Closed Term APR*
  6 months 6.75%
  1 year 7.05%
  2 year 7.30%
  3 year 7.30%
  4 year 7.30%
  5 year 7.19%
  7 year 7.55%
  10 year 8.00%
     
* Annual Percentage Rate (APR) calculation assumes no fees will be charged.
 
       
    Construction Progress Draw Mortgage: We offer mortgages on new home construction in the form of a construction mortgage or builders mortgage. We also have tools to help with new home construction.  
    Requirements  
    - Registered under the Provincial/National/Local New Home Warranty Program
- Land financing may be paid from first advance with 25% Down.
  
    Advance Schedule  
    Advances will be made as construction progresses, always holding back the cost to complete construction and any 10% lien holdback requirements. For uninsured, the first advance may be made when the property is 40% complete. For insured, the first advance is available immediately. Please contact your Kash Mart for more details.  
       
    We offer mortgages on new home construction. We also have tools to help you with a builders/developers mortgage and construction mortgage.  
   
Progress Advance Schedule
Draw
% complete
 Description of Work Complete
1 0-45% Land; roof shingled; frame; sheating; doors & windows; rough plumbing & electric; insulated & vapour barrier; basement floor; This is commonly referred to as the "Locked up" or "Air Tight" stage.
2 65-75% Plaster or drywall completed, furnace installed and working, exterior walls completed.
3 85-89% Trim work completed; kitchen cabinets/cupboards installed; bathroom tile and glazing completed; interior doors hung.
4 85-89% House completed.
5 100%+45 days Lien Hold Back
Amount of Loan Paid: 10% HELD BACK
     
Example
  Loan Amount
$130,000 (G)

Building Value $160,000
(18.75% Down)

 Progress Draw
 
A
B
C
D
E
F
H
Draw % Complete from Inspection Building Cost (excluding land) Total Advance To Date (Column H) % of Remaining Construction (100% - A) Cost to Complete (D x B) Lien Holdback (10% x A x B) Alailable Loan Amount (G) - (E + C + F)
1st 43% $160,000 $0 57% $91,200 $6,880 $31,920
2nd 70% $160,000 $31,920 30% $48,000 $11,200 $38,880
3rd 85% $160,000 $70,800 15% $24,000 $13,600 $21,600
4th 100% $160,000 $92,400 0% $0 $16,000 $21,600
Final 100% $160,000 $114,000 0% $0 $0 $16,000
Total   $160,000 $130,000       $0
 
    * Lien holdback % and filing period varies by Country for a builders mortgage or construction mortgage for new home construction. The holdback is released once the Country required # of days have expired following the inspected completion of the new home construction project.  
    How Do We Get Off To The Right Start?  
    You're ready to build your dream house. You've finally reached the point in your life when you can construct a home that's made just for you. But, where do you start?  
       
    The first step, of course, is to find a site. Not any plot will do. Consider these factors:
  • Is the parcel of land large enough for the house you have in mind?
  • What kind of property taxes will there be?
  • Are municipal sewer and water lines available? If not, you'll have to install a cesspool and dig a well.
  • What about the water table... is this a flood plain area?
  • Will the soil be strong enough to support the house?
  • What's the grade like...will it be too steep for your purposes?
 
       
    Next, comes the plan. You need to be satisfied with its size, features, and layout. When reviewing a blueprint, make sure:
  • It's not too large for your budget, or too small for your needs.
  • There are plenty of bedrooms.
  • You've got a kitchen that's well planned and accessible to the rest of house.
  • There's a family room big enough for the family.
  • Its garage is large enough to fit the way you live.
  • All amenities you've dreamed about and can afford are included: a fireplace, clerestory windows, passive solar heating, decks, a large master suite, cathedral ceilings, just to name a few.
 
    Now, for the financing. You need to estimate how much it is going to cost you to buy the land and build the house. While the price of the land is easy to find out, construction costs may be more difficult to figure. After you've completed blueprints for a new house, take it to a builder or contractor that can give you an estimate. A builder can tell you approximately how many dollars per square foot it'll cost to build. Knowing the square footage, you can approximate the construction cost. And with those figures, you can begin to shop for financing.
  
    Financing the New Construction  
    The type of mortgage or mortgages you select to finance your new construction depends on how you're planning to build. If you contract a developer to build your house and it includes the lot, you can finance the deal with one long-term mortgage loan. But if you buy a lot and hire either a general contractor or several subcontractors to build the house you need two mortgage loans; a building or construction loan, which is a short-term or interim loan to finance construction until the house is built and approved for occupancy, and a long-term loan to refinance the building loan. Here's some additional information on construction loan financing:  
    Construction Loan Mortgage  
    Should you decide to buy a lot and take charge of constructing your house, you would need a construction loan mortgage to finance construction. To obtain a construction loan mortgage, you are required to submit to the lender a set of blueprints, specifications, and an estimate of construction costs signed by an engineer, architect, or general contractor. The lender gives these documents to its appraiser for evaluation. In addition, the lender usually requests a recent land survey, a copy of the deed, and a statement that the property is not mortgaged.  
    Blanket Mortgage  
    A blanket mortgage is a mortgage secured by more than one lot. It is often used by developers to finance an entire subdivision since it is less costly than mortgaging each lot separately. When you contract a developer to build you a house, or buy only a lot from him, he must obtain a release of your lot from the blanket mortgage in order to give you a clear title. This is usually done by including a partial release clause in the blanket mortgage agreement by which he can obtain the release of a lot by repaying a specific portion of the debt.  
    Picking A Builder  
    Kash Mart will supply you with a list of approved builders in your area. The person you hire as your builder should be someone that you like and trust. After all, he'll not only be building your home, he'll be spending your money. It's a relationship that will last for several months, so make sure you are comfortable. Here are some questions you should ask when hiring a builder:
  • What else has he built in your area? Talk with the owners of houses he has previously constructed.
  • Were they satisfied with his services? How did he manage time frames, what was his service and attention like once the home was completed? Check the quality of the construction.
  • How do key subcontractors like working with him? What's his pay history?
  • Can he guarantee his cost? Before he starts building, go over the entire plan with him to make sure you're getting the sizes and types of windows you want, your choice of fixtures, trim, cabinets. Make sure you know what you're getting for the money. If changes in the plan are necessary during construction, get them in writing with a firm price attached.
 
    Managing The Process  
    To be sure your dream home doesn't become a financial nightmare you need to get everything in writing. Everything. Start with the base home price and standard specifications. Add any contingencies that may be necessary. Be sure to include in your contract any upgrades or products and features you desire. Vagueness and relying on verbal information and pricing can be an extreme source of frustration and disappointment. Not to mention, expensive.  
    After construction has begun, changes or change orders will often be necessary or desirable. Insist on the cost and description of each and every change being documented on paper and signed by both parties. This will eliminate any verbal miscommunications or misunderstandings. It is also a good practice for all construction draws to be co-approved by you and the Kash Mart. This is your guarantee that the builder does not get the draw until the work meets with your approval.  
    Remember, this is your home and money being spent, so you want to maintain as much control as possible over this segment of the construction process. Make sure the builder is requiring the sub-contractors to sign a lien waiver, once they have been paid for their work on your home, and ask to be provided with copies. This is your proof that the sub-contractor has been paid, and cannot place a lien on your home at a future date, due to lack of payment.  
    A Construction Timeline  
    Constructing a home can take anywhere from six months to one year (or more), depending on a number of factors. The size of the house, number of workers, weather conditions, and unexpected--but inevitable--delays all make a difference. Though the order of work may vary slightly and local building-inspection requirements differ, this timetable, spread over a seven-month period, should give you a pretty good sense of what to expect and when:
Months 1 & 2
  • Obtain municipal and state permits
  • Begin site work and excavation
  • Pour foundation
  • Frame floors
  • Rough-in electrical and plumbing under floors
  • Install first-floor subfloor
  
    Months 2 & 3  
   
  • Frame walls, roof and ceilings, including all door and window rough openings
  • Install remaining subfloors
  • Apply exterior wall and roof sheathing
  • Rough-in remaining electrical and plumbing lines in wall, ceiling and floor cavities
  
    Months 3 & 4  
   
  • Inspect mechanical rough-in and exposed structural work
  • Apply roof flashing and shingles
  • Install windows and exterior doors
  • Apply exterior trim
  • Apply exterior-wall finish material
  
    Months 5 & 6  
   
  • Install cabinets and countertops
  • Apply ceramic tile in baths
  • Finish plumbing and electrical work
  • Paint and wallpaper
  • Install finish flooring
 
    Months 6 & 7  
   
  • Install hardware and appliances
  • Touch-up for final inspection by homeowner and city building inspectors
  • Landscape
  • Make final payment to contractor
  • Move in
  
     
       
       
   
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