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CUSTOM HOME FINANCING

Anbros Financial provides a standardized approach to financing infill custom home builds. Below provides a summary of our standardized financing structure. 


Maximum Loan Amount (Land + Construction)  = 70% of the AS BUILT value of the house


Loan funds can be used to finance the following cost line items:

  1. 75% of the Lot purchase / appraised value PLUS
  2. 100% of the hard cost of construction (including development charges)



ILLUSTRATIVE EXAMPLE


Example Assumptions:

- Lot value / purchase price:  $1,000,000

- Size of house being built:  3,000 sq.ft.

- As built / End value of the house when complete:  $2,500,000

- Hard cost of construction:  $750,000

- Soft cost of construction (project mgmt, marketing etc..):  $50,000


The first step would be to calculate the maximum available loan amount that can be provided to finance the project.


Maximum Loan available  = 70% of the AS IF BUILT value of the house

                                               = 70% x $2,500,000

                                               = $1,750,000


Now that the maximum loan amount has been determined, the next step would be to calculate how the loan funds will be released.


There are 2 scenarios:

 

- 1st Mortgage:  We would payoff the existing 1st mortgage lender (if one exists) and register our

                             mortgage in 1st position on the property.


- 2nd Mortgage: We would register our mortgage in  2nd position behind the existing bank 

                             lender and fund the construction costs. 



1st Mortgage Scenario:


Loan funded against the building lot / paying off existing 1st mortgage

                                 = 70% of the Lot purchase / appraised value

                                 = 70% x $1,000,000 = $700,000 (amount funded on loan closing)


Loan released to finance hard costs of construction 

                                = $100% x $750,000 

                                = $750,000 (released in draws as construction progresses)


Total Loan  = $700,000 against lot + $750,000 released as construction progresses   

                     = $1,450,000 


Total amount of the loan required to finance this project:  $1,450,000

Maximum amount of loan that the project would qualify for:  $1,750,000

Surplus loan availability of $300,000 can be set aside for construction contingencies


Typical Rates and Fees:

- Interest rate start at 6.50% for developments without presales.

- Interest rate start at Prime + 1.25% for developments with presales.

- Application/Lender Fees start at 1.50%



The following information is required to start processing loan requests:


- Completed Anbros Application Form (download below)

- Purchase agreement of the Lot

- Existing Mortgage statement (if applicable)

- Completed hard cost budget form for the house being built (download below)

- Architectural drawings of the house being built.

- Estimated End Value / As Built value of house



2nd Mortgage Scenario:


Maximum Loan available  = 70% of the AS IF BUILT value of the house

                                               = 70% x $2,500,000

                                               = $1,750,000


Loan released to finance hard costs of construction

                                = $100% x $750,000 

                                = $750,000 (released in draws as construction progresses)


Total Loan  = $700,000 existing 1st bank mortgage + $750,000 released as const. progresses   

                     = $1,450,000 


Typical Rates and Fees:

- Interest rate start at 8.00% for developments without presales.

- Interest rate start at Prime + 1.25% for developments with presales.

- Application/Lender Fees start at 1.50%



The following information is required to start processing loan requests:


- Completed Anbros Application Form (download below)

- Purchase agreement of the Lot

- Existing Mortgage statement (if applicable)

- Completed hard cost budget form for the house being built (download below)

- Architectural drawings of the house being built.

- Estimated End Value / As Built value of house

For additional information, please send us an email to loanproducts@anbrosfinancial.com, or, get in touch with a member of our Mortgage Origination team.  

GET IN TOUCH

Anbros Application Form (pdf)

Download

Hard Cost Budget Form (xls)

Download

Copyright © 2008 - 2025 Anbros Financial Corporation - All Rights Reserved.

Copyright © 2020 - 2025 AFC Mortgage Administration - All Rights Reserved.

FSRA Mortgage Brokerage License #12611

FSRA Mortgage Administration License #13269  


4 Robert Speck Parkway, 15th Floor 

Mississauga, Ontario, Canada. L4Z 1S1

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