Case study: Single family new construction

Scenario:

Borrower is self-employed contractor and wants to build an owner-occupied single family home in Moncton, NB. Borrower already owns the land.

Mortgage Broker submits to Keystone with an expected completed value of $500,000 (to be confirmed by appraisal).

Keystone can advance progress draws within 24 hours of the request, to minimize project delays!

Total loan facility 65% of finished value 

65% * $500,000 = $325,000 less fees 

Draw 1: 40% complete (weather tight)

$130,000 less fees advanced 

Draw 2: 70% complete (drywall stage)

$97,500 advanced 

Draw 3: 97%+ complete 

$97,500 advanced

Cost breakdown: 

Let’s assume it takes the client 8 months to complete the build.

Approximate interest for 8 months = $15,000

Lender Fees = $14,000

Interest penalties = $0

Total cost approx. = $29,000

Key benefits:

• Fast approvals & progress draw processing

• Low documentation requirements

• Minimal inspection costs

Our borrowers love our construction loans for their simplicity and speed. Connect with us today to see how we can help you build your dream home! contact@keycap.ca