Hi there
Here's our scenario: We own a house with a mortgage in Ontario, and own a lot outright in BC. We would like to build a house on this lot and then move there as our primary residence.
Thus far, we are having trouble making the money work. I'm hoping someone can give us some advice.
The big banks and credit unions in both Ontario and BC will not issue construction mortgages if you're not a resident of the province your house is being built in, so that option is out as far as I know from the 12+ institutions I've called. And until the house is built, we can't get a traditional mortgage either. Mortgage brokers are happy to set us up with a private loan at 10-12% for the duration of the build, but there is no way we'll accept that as an option. Likewise, touching our RRSP/TFSA cash is not something we want to do.
Our financial picture:
Our home build will be approx $1,350,000 excluding the lot
Our current home equity is about $700k, mortgage about $650k at HSBC
The lot was paid in full with cash, $300k
Current RRSP/TFSA about $1M
Combined yearly salary $300k
Zero debt or liabilities otherwise. Cars/boat/credit cards etc. paid for.
We have a $300k HELOC which we could access
Looking at our finances, I can't comprehend how we can't make this build happen, yet no one I've talked to "bankers" seems to be able to know how to make the cash flow work across the provinces while keeping interest rates kind of reasonable.
Thoughts?
Mat
Here's our scenario: We own a house with a mortgage in Ontario, and own a lot outright in BC. We would like to build a house on this lot and then move there as our primary residence.
Thus far, we are having trouble making the money work. I'm hoping someone can give us some advice.
The big banks and credit unions in both Ontario and BC will not issue construction mortgages if you're not a resident of the province your house is being built in, so that option is out as far as I know from the 12+ institutions I've called. And until the house is built, we can't get a traditional mortgage either. Mortgage brokers are happy to set us up with a private loan at 10-12% for the duration of the build, but there is no way we'll accept that as an option. Likewise, touching our RRSP/TFSA cash is not something we want to do.
Our financial picture:
Our home build will be approx $1,350,000 excluding the lot
Our current home equity is about $700k, mortgage about $650k at HSBC
The lot was paid in full with cash, $300k
Current RRSP/TFSA about $1M
Combined yearly salary $300k
Zero debt or liabilities otherwise. Cars/boat/credit cards etc. paid for.
We have a $300k HELOC which we could access
Looking at our finances, I can't comprehend how we can't make this build happen, yet no one I've talked to "bankers" seems to be able to know how to make the cash flow work across the provinces while keeping interest rates kind of reasonable.
Thoughts?
Mat