Construction financing in Ontario refers to the financing options available to individuals or companies who are looking to build a new property or make improvements to an existing one. Here are some of the benefits of using construction financing in Ontario:
- Flexibility: Construction financing often offers more flexibility in terms of loan amount and terms compared to traditional mortgage options.
- Increased buying power: Construction financing allows borrowers to purchase more property or make larger improvements than they would be able to with their own cash.
- One-time close: Construction financing allows you to get both the construction loan and the permanent mortgage in one closing, saving time and money on closing costs.
- Tax benefits: The interest paid on construction financing may be tax-deductible, which can help reduce your overall tax burden.
- Improved property value: By financing construction or improvements, you can potentially increase the value of your property, which can be beneficial when it comes time to sell.
- Control over construction process: With construction financing, you have more control over the construction process, as you can choose the contractors and materials you want to use.
- Faster construction timeline: With construction financing, you have access to funds as you need them, allowing you to move forward with construction in a timely manner.