Parade of Homes featuring the best of new homes in Manitoba, Canada
Issue link: http://publications.winnipegfreepress.com/i/378148
dOllARS ANd SENSE builder mortgages offer simplicity and savings by Jim timlick >> Buying a new home requires many deci- sions, from choosing the perfect kitchen design to deciding what flooring will look best in the liv- ing room. One of the most important de- cisions for any home buyer is choosing the right mortgage, and for an increasing num- ber of manitobans, a builder mortgage is the way to go. builder mortgages are de- signed specifically for new- build projects and offer a va- riety of choices suited to the challenges of building a new home. James Gosselin, executive vice-president of fi- nancial services for Steinbach credit union, says one of the biggest advantages builder mort- gages have to offer is in cost saving. most buyers don't have to start paying interest the moment construction begins. "the advantage is the homeowner doesn't have to deal with having to pay interest throughout the build. they don't have to pay (interest) for the life of that construction period," Gosselin says. Four basic types of builder mortgages are available to new home buyers and builders: • Turn key mortgage: A turn key mortgage is designed for homes being built and funded by the builder until the possession date. • Assumption mortgage: An assumption mortgage is similar to a turn key mort- gage in that it is funded by the builder until the date of possession. However, it requires an initial deposit by the buyer and is available to only certain types of builders. • Contract build mortgage: A contract build mortgage, or progress mortgage, is set up in stages, and the buyer must make payments throughout the building pro- cess. the payment schedule can be flex- ible and payments are usually determined by the pace of construction and value of the home. • Self build mortgage: Self build mort- gages are designed for buyers who are able to do some of the work themselves and are willing to hire subcontractors for any aspects of construction they are not prepared to assume themselves. 'The advantage is the homeowner doesn't have to deal with having to pay interest throughout the build.' Cont'd on page 18 16 Parade of Homes Fall 2014