Tips and Tools

How to Finance New Home Construction

From our Underwriting Team

Building a new home can mean a lot of great things for your clients. However, financing the construction process can sometimes be difficult and time consuming. Bridgewater Bank's Progress Advance Program features a draw mortgage that provides funding during the various stages of a home's construction.

Who can qualify? Clients who are building their home, may benefit from this program.

1. Residential home: For clients buying a home through a residential home builder
2. Contractor: For clients who build their home through one general contractor
3. Self-build: For clients who act as their own general contractor and hire qualified, licensed trades-people to build their home.

What documents should be submitted with the application? To ensure a fast approval of the application, make sure the following documents are provided along with the application. Document templates are available on our website.

1. Schedule A: Construction Costs Schedule. Only required for self builds
2. Schedule B: Advance Schedule Report. Required for all BwB Progress Advance Mortgages
3. Schedule C: Document Checklist. Required for all BwB Progress Advance Mortgages

How are the draw stages calculated? There are four stages of construction at which funds are allocated based on the percentage of the construction being completed.

1. Backfill-ready: At this point the foundation is complete and ready for backfill (approx. 16% is completed)
2. Lock-up: All main framing is complete, doors and windows are installed, the roof is complete and it is ready for drywall (approx. 49% completed)
3. Paint-ready: Drywall is complete (installed, taped and sanded). Lighting and electrical is 90% complete. Furnace and water heater are installed and functioning (approx. 75% is completed)
4. Complete: Final home inspection is complete and an occupancy certificate has been issued

All new construction must meet the National Building Code of Canada, Residential Standards of Canada (latest edition) and applicable municipal and provincial building codes and standards. For more information about the BwB Progress Advance Program call us to find out more._.

_{This information and any received via Broker Insight is given solely for educational and informational purposes and should not be taken as advice or as a solicitation from Bridgewater Bank.}

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