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CONSTRUCTION FINANCING

Need Construction Financing?

We understand that securing construction financing for custom home construction Toronto, or when working with a new custom home construction company in Canada, can often be challenging through traditional banks/financial institutions or private lenders.

We wanted to provide a solution - "Midnight's In-house Construction Financing". What if we have financing via personal cash, Home Equity Line of Credit, or other? That's great too! It's by no means mandatory. It's just offered as a solution for those that may want to explore it.

Please note our Inventory Builds are fully financed - land and construction until completion with everything all included. Can be viewed at: FOR SALE

Frequently asked questions

What is the process?

  • We require a 20% down payment depending on the amount borrowed. This amount is largely determined by the equity in the land component.
  • Pre-approval from a financial institution on the take-out mortgage (we can assist with this).
  • Approved project land equity and location (sorry, there are areas and projects we won't fund).
  • Approved Personal Networth, Credit Score, and Income.
  • More information may be requested during the application process.

[Denial or approval of application is at Midnight's sole discretion and may occur without explanation.]

What does your financing look like?

  • An interest rate is presented at the time of Notice of Financing. It is based on the risk factors determined in the information provided by the Borrower. The current rates range between 8-15% with an exception to 5% if the property is owned outright with no mortgages/liens registered on title. The rates are always based on approved credit and project scope.
  • No monthly interest payments are required. The payment of principal and interest is due on completion.
  • No lender’s fee or construction milestone appraisal fees.
  • Lawyer’s fees with respect to the charge and discharge are the responsibility of the borrower. Estimations will be provided.
  • Because we build most homes in seven (7) months or less [larger homes over 4000 sq ft above grade or winter builds can extend seven to eight (8) months], this also keeps the interest payment lower. If the build is delayed (which is very rare), the interest stops at the guaranteed completion date (unless the delay is due to the borrower or an Act of God – see terms of the contract).
  • The financial company that holds your first mortgage MUST allow the property to be demolished. Most institutions don't have any issue with this, but some private lenders may. Please check with yours as this is a requirement for our financing. If there isn't any mortgage on title, this requirement is considered fulfilled.

What are your rates like?

Currently, our rate ranges between 8-12% with an exception to 5% if the property is owned outright with no mortgage/liens registered on title. Keep in mind- you're only borrowing for approximately half the year, so the interest is only about half of the full annum. If we are delayed at no fault of yours, your interest is not payable AND you're entitled to $5,000 per month (pro-rated) for the time we're late.

If you have high equity in your land purchase and a pre-approval from a financial institution upon completion of the build, the rate would be on the lower end of the range.

Financing terms:

  • 15-20% deposit required;
  • No interest payments; principal and interest due on completion;
  • Legal fees for mortgage charge and discharge are the borrower's expense;
  • No lender's fees;
  • No construction appraisals are required.

Disclaimer: Promo can change without notice and at any time.

SPECIAL BONUS: Our first new contract of 2024 will be offered a 2.5% in-house construction financing rate subject to approval of credit and project. Also available as cash value against the contract amount!

How Do I get Started?

That's great to hear! Kindly send us an email to info@midnightbuilding.com, call 905-804-1616(office), or if you're already working with us, please contact your sales representative directly.

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Great! Kindly send us an email to info@midnightbuilding.com, call 905-804-1616(office), or if you're already working with us, please contact your sales representative directly.