Angry Mortgage Special Guest Derek Serra | EP. 122
May 20, 2025
Derek Serra, President of Westboro MIC, shares his expertise on construction mortgages in Ontario. He dives into the complexities of private lending and the importance of understanding financing prerequisites for those wanting to build their own homes. The discussion highlights the current challenges in construction lending, the risks of private mortgages, and the evolving market dynamics. Derek emphasizes the need for transparency in mortgage terms and the critical role of sound advice in navigating today's financial landscape.
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Construction Drought Drives DIY Demand
- There's a severe drought in new single-family home construction in Ontario and parts of Canada. - This scarcity drives individuals to build their own homes, fueling demand for construction mortgages.
Construction Lending Requires Upfront Cash
- To start construction lending, own the land free and clear and have all permits in place. - Expect to cover initial "soft costs" and possibly dig the foundation with your own funds before draws begin.
Prioritize Flexible Construction Draws
- Use lenders who offer unlimited draws for flexible construction financing. - Prioritize access to capital over cost during the build to avoid delays and extra fees.