If you’re looking for construction loan tips and information for new build financing in the GTA (Greater Toronto Area) you’ve landed in the right place. Educating yourself about the various financing options as well as ways to make your budget go farther can take make the process of building from the ground up as smooth and cost-effective as possible.

1. Understanding what a construction loan is – A construction loan is a loan that is procured to cover development costs on a new build. Unlike a mortgage, a construction loan is for a much shorter term, usually 12 to 36 months. Construction loans are considered along the lines of commercial specialty financing product and along with the shorter terms can sometimes come with a slightly higher interest rate. Further, builders are not advanced the entire amount required in a lump sum payment; rather the funds are distributed throughout the course of the project based on construction milestones.
2. Understanding cashback mortgage options – Although some financing places do offer cashback mortgage products, finding the availability on this tape of commercial loan is exceptionally rare. Traditional cashback mortgages do provide cashback, but this amount generally comes with a higher overall interest rate. Also, should the mortgage terms need to be altered in anyway, in addition to a full or partial claw back on the cashback amount, costly penalty fees wills will also be incurred.

3. Understanding cashback real estate options – When connecting with a realtor directly, it is possible, although very rate, to opt for real estate commission rebate cashback when purchasing a property for your build. If you can find a realtor that will agree to divest themselves of a portion of their commission you may be doing so to the detriment of the full-service real estate experience you would have been otherwise been entitled to. As you likely know, realtors are an invaluable member of any building team and any money saved in this way may not be worth it in the long run.
4. Understanding how to make your money work harder – These may be the most important construction loan tips and information for new build financing in the GTA you will ever get. Making your money work harder means creating a budget, sticking to it and shopping smarter to make sure you have a sizeable emergency slush fund for unexpected hurdles as they pop up during the process. Nobody has time to watch for promotions, cut coupons or compare prices, especially those running a business. Instead find a platform that will eliminate the price shopping legwork Shop2save is just such a program that will not only get you the very best deals online when shopping for your business, but it will reward you handsomely while you do it. Shop2Save leverages the very best savings with volume-sourced discount prices usually only available to mega-corporations. The vast Shop2Save member base affords the individual consumer the power of the crowd. And as a member you can earn up to 45% real reward cashback dollars that can be spent anywhere MasterCard is accepted. Shop2Save can also facilitate cashback real estate and financing options without the drawbacks or hidden strings. Shop2Save affiliates with the biggest names for real estate and mortgages, and in so doing, when members connect through the Shop2Save site they will also be rewarded with real cashback reward dollars during real estate transactions and for arranging financial services like construction loans.

Construction loan tips and information for new build financing in the GTA are only as good as how you use them. Visit Shop2Save today to see how this platform offers one stop shopping to make the process of building from the ground up as smooth and cost effective as possible.