October 4, 2016
Financing a new home build through builders, banks or brokers: Answers to your burning questions!
Although you may already be familiar with the financing process when it comes to buying an existing home, the process is a little different when it comes to financing a home that’s being built for you. Perhaps you’re unsure whether you should approach your bank or a mortgage broker. Our clients often ask us about the buying process, so we’re sharing our answers to two popular questions in today’s post.
Q. I’m thinking about building a new home, instead of buying an existing one. What are my financing options in this situation?
A. In this situation, there are two possibilities:
Q. Sadly, I don’t (yet) own a Tesla Model S, and I’m not raising any #richkidsofinstagram. Translation: I’m not independently wealthy, so I’ll need to apply for a mortgage to finance the construction of my new house. Should I make an appointment with my bank, or go to a mortgage broker?
Financial institutions (banks and credit unions)
If you’re happy with your current financial institution, it’s a good idea to book an appointment with your banker or a mortgage specialist there to find out what your options are—but it still pays to shop around. Don’t just look at the posted rates online or in the branch—often, those are just a baseline.
A mortgage broker’s job is to find you a lender with the best interest rate and mortgage terms to suit your own unique financial situation. They negotiate on your behalf, as an intermediary between you and a number of lenders.
A mortgage broker will assist you throughout the application process, but the financial institution who provides the mortgage will service your loan: collecting payments and providing customer service.
Mortgage brokers and mortgage specialists with the banks often work outside traditional “banker’s hours” these days. Many of them will even come to you—whether that’s your home or office—and meet during a weeknight, weekend, or whatever suits your busy schedule. How about a referral to a fantastic mortgage broker? We’ve also got you covered there. Contact us today and we’ll team you up with a talented and trusted professional.
Want to learn more about financial side of building a new home in Saskatoon? Check out our latest guide, Financing a new home: Top 10 things to know.