Local Support from start to Finish. A comprehensive, easy-to-understand, step-by-step process for financing your prefabricateed home.

Transcription

1 Local Support from start to Finish. A comprehensive, easy-to-understand, step-by-step process for financing your prefabricateed home.

2 Why should you choose Community First for your Prefabricated Construction Mortgage? Our prefabricated construction mortgages are packaged as a single mortgage with one closing date to simplify your building process while saving you time and money. That means affordable interest-only payments are the sole requirement on the money advanced to you during construction. During the construction, your mortgage is disbursed into 4 separate advances to cover the construction costs. Upon installation of your home on the foundation, the full amount of your prefabricated home is advanced to you.

3 Face-to-face conversations during the construction and financing of your dream home, plus the additional benefit of local decision-making and in-depth knowledge of our communities. Our Smart Mortgage Advisors know prefabricated mortgages, and they ll take the time to guide you through the entire financing process. Our prefabricated construction mortgages are available for residences and cottages. Our mortgage pre-approval process lets you lock your rate for up to 120 days so you ll know exactly how much you can afford to build. You can build your home with as little as 5% down, and amortize your payments for up to 25 years. *Down payment may vary based on the financed amount. For down payments of 20% or more, you can extend the life of your mortgage and amortize your payments up to 40 years. Choose between variable or fixed rate mortgages for 3 to 5 year terms. We offer flexible completion timelines up to 12 months. Step 1 - Start by applying for financing Financing you prefabricated home with Community First is simple and straightforward. Apply for a mortgage or obtain a mortgage pre-approval today by visiting any of our branches.

4 Step 2 - Know what to bring to your appointment Not sure of what to bring for your prefabricated mortgage meeting? Mortgage Financing Checklist Confirmation of your Employment and Income: Copies of your last two pay stubs. A confirmation letter from your employer on company letterhead. Letter should list your name, wage (salary or hourly pay rate), plus the name and title of the individual signing the letter. If you are self-employed or work on commission, please bring copies of your Notice of Assessments (NOA) from the Canada Revenue Agency for the last 2 years. Confirmation of Down Payment: A copy of your bank or investment statement Or, a Gift Letter. Or, proceeds from the sale of an existing property. A copy of the Purchase Agreement on your new prefabricated home. A copy of the Deed to the land: Required only if you currently own the land you are planning to build on. *Your home must be purchased from an authorized dealer.

5 Step 3 - Get approved Your mortgage application goes through an approval process that takes approximately 2 to 4 days to complete and includes an appraisal value of your prefabricated home. Once your application has been approved, your Smart Mortgage advisor will contact you to finalize your mortgage. Step 4 - Your construction advances When building a prefabricated home, periodic payments to suppliers are required as work is completed in order to pay for materials and labour. Our prefabricated construction mortgages provide you with a series of 4 advances so you ll have the funds when you need them. Typical construction mortgages have 10% of each advance held back until an inspection or the construction is completed. With prefabrication construction, the advantage is your 1st and 2nd advances are 100% funded for the total construction costs, without a 10% holdback. A 10% holdback is only required on the 3rd advance. In the 4th and final advance, the 10% holdback is disbursed to you.

6 1 st Advance: Land Preparation 2 nd Advance: Module(s) Cost Typically includes: Excavation, backfill, water supply (well & septic tank where applicable), concrete forms, concrete, crushed stone and foundation damp proofing. Typically includes: Complete cost of building and delivering your prefabricated home modules. 1st inspection required. No inspection required. No 10% holdback. Your down payment is applied to your land cost. No 10% holdback After your home is property and installed on the foundation, 100% of the cost for your prefabricated home modules is advanced to you. 100% of the land cost (less your down payment) is advanced to you.

7 3 rd Advance: Finishing Cost 4 th Advance: 10% Holdback Released Typically includes: Finishing costs associated with wiring, heating, fixtures, and cabinetry, finished carpentry, including trim and painting, floor coverings and bathroom tile. Typically includes: Upon completion and receipt of your occupancy permit, the 10% holdback from your 3rd draw is advanced to you provide there are no construction liens. This disbursement requires an inspection to confirm is complete. 10% holdback is applied. The remaining value of the mortgage for the finishing costs, minus the holdback, is advanced to you. Step 5: Enjoy your new home!

8 01/2016