The Magenta Mortgage Group has been providing construction financing for new home construction in Eastern Ontario since 1994.
As a regional non-bank lender, Magenta–via your licensed mortgage broker or agent–has the flexibility to fund builds including but not limited to the following:
- New construction, additions or renovations
- Single family and multi-family dwellings
- Custom builds & designer homes
- Infill (tear down and rebuild)
- Personal or company name (officers to guarantee)
- Land financing for future development
- Modular homes
- Urban and rural locations (85% LTV urban, 75% LTV rural—higher with firm sale)
- Second and seasonal homes
- Construction of two or more units on one parcel prior to severance
- Business for self or NIQ borrowers
- Homeowners can market their existing home while building the new home.
- Customized draw schedule to match the contract and avoid cash flow problems.
- Letters of credit to support funds in suspense
- For spec builds, the solicitor manages disbursements.
- An AACI or CRA appraiser’s progress report is required to trigger a draw.
- Loans from $250,000.00 to $1,500,000.00.
- Payments can be made monthly or interest can be deducted from the advance.
- Term: 6 month to 1 year, open or closed
- Rate from TD prime plus 7%.
- Progress advance based on cost to complete or finished value
- Up to 75% LTV initial land advance (urban) to get started (50% for rural)
- Lump sum advances for delivery of modular homes and log homes.
- Interest compounded monthly on net advance.
- Ontario only (specifically Ottawa, Kingston, Brockville and the region in between, London, Cambridge, Waterloo, Guelph)
- Basic holdback applies to all draws where funds are advanced for construction purposes.
Magenta’s underwriters are proficient at customizing a financing offer to make sure that your construction projects flow smoothly and with as few obstacles as possible.
Let your licensed mortgage broker or agent know if you’re facing a tough financing situation. To locate a licensed mortgage broker or agent, visit the FSCO web site.
Most banks are also able to arrange a Magenta mortgage through their approved relationships with licensed mortgage brokers. Ask your bank mortgage rep for a referral.
Magenta is a member of the Greater Ottawa Homebuilders’ Association and the Ottawa Construction Association.