Home Trust recently re-launched its conventional Builder Program.
The program is designed (among other things) to help people finance the construction of a new home.
Here are a few of the details:
The Builder Program is conventional financing. Therefore, you’ll need a sufficient down payment, as per below.
Home Trust finances up to 65% of the total cost of a project, on an as-completed basis (i.e., Home will lend up to 65% of what the house will be worth after construction is completed.)
Home Trust advances up to 75% of the land (lot) cost as a first draw
The next three draws are typically 40%, 70%, and 97% minus the typical ~10% lien holdback
Builders must have a good track record and be Tarion-approved (no self-builds allowed)
The property must receive a Tarion Warranty
The program is limited to major urban centers in Ontario
President, Nick Kyprianou, says Home is doing a lot of infill projects as well as new builds. This makes the product a potential solution for people who plan to buy a home, tear it down, and put up a new one.
Incidentally, Home had a builder program before, but it wasn’t highly publicized.
Detailed guidelines are not presently available because Home Trust treats each deal on a case-by-case basis. Speak with a Home Trust approved mortgage planner for complete details.