Building a new home, either by yourself or through a developer is an exciting prospect. New built homes hold many advantages over a resale home including less maintenance, more energy efficiency, and the prospect of living in a home designed to your specifications without compromise. It is a large undertaking though, so the following construction loans tips for Toronto pre-build opportunities can help save you some time and headaches as you plan out the process:

1. Think of your pre-build plan like you’re going into business - When starting a business and you need financing you must have a business plan detailed enough for a lender to consider your business as a legitimate venture. The same is true when beginning the process of new home construction in Toronto. If you think of your pre-build plan like a business plan it will enable you to list the right details to ensure financing. You’ll need copies of your design plans, permits, detailed cost projections, and builder details and paperwork.
2. Maintain and improve your credit – If your current credit rating is in good standing, take steps to ensure it stays that way, or improves. This means keeping your credit-to-debt-ratio as low as possible, which is done by making sure available credit amount far exceeds amounts owing. You’ll also want to avoid applying for any new credit products as this will show as ‘hard’ hits on your credit report and will drop your score.
3. Work with top professionals – For financing, there are a few different options when it comes to building and construction loans, tips for the most appropriate kind will come from a top Toronto mortgage professional. They will be able to walk you through the details and make suggestions to help you find and secure the best financing possible for your situation. For purchasing a building lot, or an older property for teardown construction a real estate professional will be able to provide you with years of industry knowledge to ensure you’re making the best purchase.

4. Don’t underestimate the importance of an Emergency fund – Having and building an emergency fund is essential to seeing your building project through to completion. Life happens, and when it does it usually brings an invoice. Working an emergency fund into your budget is essential, and funds will grow quickly if you dedicate savings from other budgeted items to it, as well as taking measure to cut costs where it is viable.
5. Shop smarter – A little time researching smarter ways to shop could not only save you a lot of money, but also give you ways to earn cashback rewards dollars to put back into your building budget, and especially into your emergency fund. With the building planning process being as busy as it is, it is not likely you will have time for couponing, scouring flyers or looking for price comparisons. Your best bet will be joining an online savings program. Shop2Save offers the most lucrative one on the market, and even just a quick look at the website will show you why it is of particular benefit to those on the verge of, and during a new build project. From the best volume discount shopping (possible because of the large Shop2Save member base) to a cashback rewards project that is unrivaled.

In addition to earning BIG cashback rewards dollars on all purchases made through the site, Shop2Save also collaborates with top professionals you’ll want to have on your team and provides further cashback when you arrange your essential services with these associates. Haven’t purchased the lot where you plan to build yet? Remax for the Win! Ready to secure financing for your build? Dominion Lending Centres will happily work with you to arrange your construction loan!

Build on construction loan tips for Toronto building projects with cashback rewards during every stage. Check out Shop2Save today!