Mortgage Advice for Buyers of New Construction Homes
Looking for a new-construction mortgage? Find out more!
Have you signed up for a new-construction project? If so, you’re probably in the midst of making decisions about additional work and interior design. But do you know what your financial options are? I’d be happy to lay everything out for you and provide you with the best independent mortgage advice.
What should you keep in mind?
Taking Out a Mortgage
for a new home
Taking out a mortgage for a new-construction home works just a little differently
than when you buy an existing home. I’d be happy to outline the options for you!
Flexibility & Convenience with a Construction Account
A construction account is a special account linked to your mortgage. A portion of the mortgage amount is deposited into this construction account. You use this account during the construction period to pay invoices for items such as building materials and contractor fees. This offers you flexibility and convenience, as you have immediate access to funds to cover construction costs.
You can also finance 100% of additional construction work, such as a dormer window or an addition. You’ll only pay interest on the amount you withdraw from the construction account. As construction progresses, you’ll pay more interest. Once construction is complete and the account is empty, you’ll begin paying your full mortgage payments.
Potentially Higher Mortgage and Interest Rate Discount When Purchasing an Energy-Efficient Home
Many newly built homes have a green certification and are more energy-efficient than existing homes. A green certification means that the home meets certain sustainability requirements and is built using environmentally friendly construction methods. This is attractive to mortgage lenders. That’s why they often offer lower interest rates on mortgages for new-construction homes or allow for a higher mortgage amount.
Would you like to learn more about how you can save money? I'd be happy to look into everything for you and give you personalized online advice and act as a liaison with lenders. That way, you’ll get a mortgage with the best terms, tailored to your personal situation.
No Stress Over Construction Delays
You may be renting or owning a home during the construction period, which incurs housing costs. In that situation, you’ll have housing costs for your current home as well as mortgage payments for the new home once construction begins. This means you’ll have double the expenses for at least the duration of your home’s construction. I’ll lay everything out for you so you know what to expect financially.
Calculate your maximum mortgage amount and compare interest rates
Would you like to know in advance the maximum amount you can borrow for your new home? Or are you curious about the lowest mortgage rate with the best terms?
Here are some handy tools to help you get started:
> Compare current mortgage rates
Bring it all together for you!
Advice from A to Z so you can live worry-free
“Calculating your maximum mortgage amount and monthly payments is just the tip of the iceberg when it comes to getting the best mortgage. I think it’s important that you’ll be able to live as stress-free as possible in the future, because we’ve taken care of everything properly now.”
– Shariff
More than 600 other homebuyers have already gone before you
Shariff provided us with excellent guidance throughout the construction of our new home. He clearly explained the construction escrow account and all the arrangements. We were able to sign the contract with confidence!
As a buyer of a newly built home, I had a lot of questions about financing and construction delays. Shariff had an answer for everything and handled everything flawlessly. I’m extremely satisfied!
Frequently Asked Questions About Mortgage Advice for Buying a New Home
A new-construction mortgage is a mortgage specifically designed to finance new-construction homes. It often includes specific terms and options—such as a construction account—that differ from those for existing homes.
Mortgage interest usually begins to accrue as soon as the first construction installment is paid. This means you’ll start paying interest on the amount you’ve withdrawn from your construction account.
Yes, during the construction period, you pay interest on the amounts withdrawn from the construction account, as well as principal payments. Once construction is complete, you begin paying the full amount of interest and continue making principal payments.
If construction is delayed, the fixed-rate period or the mortgage offer can be extended. However, this may incur additional costs. I’d be happy to provide you with more information about this. Feel free to schedule an appointment!
In some cases, cancellation fees may be charged after acceptance of the binding offer. This depends on the lender’s terms and conditions. The fees can range from no charge to 1% of the mortgage amount.
Do you have any other questions? Please contact me. I'd be happy to help!