Builder Finance FAQ
The maximum loan term, where warranted, is 24 months; however, on a typical project we will provide 12 – 18 months depending on the size and time needed for building permit application.
If you aren’t planning to sell the property once construction is complete, our team cannot provide long-term financing at this time. You will need to get pre-approved for take-out financing with our small business (for incorporated builders) or our retail lending team (if you build under your personal name) as part of the application process.
In almost all cases the answer is yes. A guarantee from an individual or business with meaningful net worth is an important qualifying factor in our application process.
Our setup fee is determined at the time of application, but normally 1% to 2% of the loan amount.
Construction loans are advanced as work is completed on the project. Advances are usually processed within 2 business days of an inspection that verifies the work in place.
Approval and Review Process
- The Purchase and Sale Agreement (or statement of adjustments where the land is already purchased)
- A Detailed Budget for the project (or a typical home in the project) broken down into land, hard, soft, and contingency costs
- Ownership Structure – An Org Chart or clear summary of the ownership for the project.
- Current Personal Net Worth Statements (click here for the Net worth) with any supporting documentation (bank statements, BC Assessments, etc.) for all guarantors/principals of the deal
- A Resume - a summary of the builder’s history (include addresses, budget, sale price, and project description).
- An Appraisal of the Project and as-is value of the land.
- 2 years Notice to Reader Financials statements for those who build under a company name OR 2 years T1 General Tax Returns for those who build under personal names.
- Evidence you are an HPO approved builder and registered with WCB.
- Environmental Questionnaire (click her for template) completed to the satisfaction of Coast Capital.
- Other information as required.
This information is for educational purposes, is subject to change at any time, and does not represent an offer or a commitment to provide financing for your project. Further due diligence, satisfactory to Coast Capital, must be obtained and authorization of the financing proposal through Coast Capital’s internal credit approval process must be achieved prior to Coast Capital issuing a formal facility letter.
For information about the complaints handling process, click here.