Go Back   BuildingHomes.ca - Building your community! > Ontario > Ottawa

Ottawa For those in Ottawa, Kanata, Stittsville, Orleans, Nepean. Mattamy, Minto, Bridlewood, Cardel, Claridge, Braebury, Monarch, Barrhaven, Half Moon Bay, Fairwinds, Findlay Creek, Notting Hill, West Pointe, Stonebridge, Edinburgh Common, Uniform at Orchard-Stonebridge-Barrhaven and more!


Reply
 
Thread Tools Display Modes
  #1  
Old 2009-01-18, 08:35 AM
sully sully is offline
Junior Member
 
Join Date: Jan 2009
Location: Orleans
Posts: 4
Question Downpayment for custom home

Hi Folks,

I just stumbled across this site this morning and am impressed by the amount of great information here!

I'm currently in a Minto Fifth Avenue townhouse in Avalon and my husband and I are thinking about building a custom home here in Avalon. Our mortgage is up for renewal in August 2010 and I've read that the builder would require 20-25% down to start building.

We don't have 20-25% for a down payment now since all of our money is tied up in our current home, and since 20-25% of the home we'd be looking at would be around 100K, it would take us forever to save that up!

Has anyone else dealt with this type of scenario? How do banks look at this type of scenario? Sorry if this is a silly question , I really have no idea.

Thanks for any information
Reply With Quote
  #2  
Old 2009-01-18, 09:55 AM
Jenny1975 Jenny1975 is offline
Senior Member
Regular User
 
Join Date: Sep 2008
Location: Ottawa
Posts: 558
Default

Do you have significant equity in your current home? If so, one option would be to obtain a home equity/secured line of credit against your current home that you could use as a downpayment. You would get a better interest rate than a regular loan and can make interest only payments if you wish.

Mortgage Guy might have other suggestions or be able to provide more insight.
Reply With Quote
  #3  
Old 2009-01-18, 05:57 PM
sully sully is offline
Junior Member
 
Join Date: Jan 2009
Location: Orleans
Posts: 4
Default

Thanks for the reply - we've got almost 100K of equity in our home currently.
Reply With Quote
  #4  
Old 2009-01-19, 11:47 AM
Riverrock's Avatar
Riverrock Riverrock is offline
Senior Member
Regular User
 
Join Date: Jan 2009
Location: Ontario
Posts: 125
Default Custom Build?

When you say custom build, do you just mean build brand new with a builder? If so, I've never heard of 20-25%, more like 20 to 30K.

We just bought brand new and it was $25K with Mattamy.
Reply With Quote
  #5  
Old 2009-01-19, 12:08 PM
New Orleans New Orleans is offline
Senior Member
Regular User
 
Join Date: Jan 2008
Location: Notting Hill South
Posts: 655
Default

Quote:
Originally Posted by sully View Post
Hi Folks,

I just stumbled across this site this morning and am impressed by the amount of great information here!

I'm currently in a Minto Fifth Avenue townhouse in Avalon and my husband and I are thinking about building a custom home here in Avalon. Our mortgage is up for renewal in August 2010 and I've read that the builder would require 20-25% down to start building.

We don't have 20-25% for a down payment now since all of our money is tied up in our current home, and since 20-25% of the home we'd be looking at would be around 100K, it would take us forever to save that up!

Has anyone else dealt with this type of scenario? How do banks look at this type of scenario? Sorry if this is a silly question , I really have no idea.

Thanks for any information
If you are going with a true "custom" builder then you most likely will need 20 to 25% down so they can afford to buy materials and pay the trades. Small builders just can't afford the overhead costs like the big guys.

The best bet is to talk to your builder and find out exactly what he needs to get going and then go to your bank with this information and they will let you know how to or if you can do it.

Will Minto sell you a lot in Avalon for a custom builder to build a home? I didn't think they would do that.
Reply With Quote
  #6  
Old 2009-01-19, 01:31 PM
Jenny1975 Jenny1975 is offline
Senior Member
Regular User
 
Join Date: Sep 2008
Location: Ottawa
Posts: 558
Default

Quote:
Originally Posted by New Orleans View Post
Will Minto sell you a lot in Avalon for a custom builder to build a home? I didn't think they would do that.
Although not the intent of the original post, I'm curious about that one, too. Seems unusual to say the least.
Reply With Quote
  #7  
Old 2009-01-19, 04:47 PM
sully sully is offline
Junior Member
 
Join Date: Jan 2009
Location: Orleans
Posts: 4
Default

Sorry folks, I meant building a home w/ Minto, not a custom builder (sorry)

20 to 30K seems much more reasonable - thanks for all of the replies
Reply With Quote
  #8  
Old 2009-01-22, 03:38 PM
Dubberdom Dubberdom is offline
Senior Member
Regular User
 
Join Date: Dec 2008
Posts: 107
Default

Quote:
Originally Posted by New Orleans View Post
If you are going with a true "custom" builder then you most likely will need 20 to 25% down so they can afford to buy materials and pay the trades. Small builders just can't afford the overhead costs like the big guys.
If anybody ever asks you for that kind of money upfront, run away (or they will run away with your money). I am building a custom home with a very small builder, I paid a deposit of 6%.
Reply With Quote
  #9  
Old 2009-01-29, 07:12 PM
custom eaves custom eaves is offline
Junior Member
Regular User
 
Join Date: Jan 2009
Posts: 23
Default

Quote:
Originally Posted by sully View Post
Hi Folks,

I just stumbled across this site this morning and am impressed by the amount of great information here!

I'm currently in a Minto Fifth Avenue townhouse in Avalon and my husband and I are thinking about building a custom home here in Avalon. Our mortgage is up for renewal in August 2010 and I've read that the builder would require 20-25% down to start building.

We don't have 20-25% for a down payment now since all of our money is tied up in our current home, and since 20-25% of the home we'd be looking at would be around 100K, it would take us forever to save that up!

Has anyone else dealt with this type of scenario? How do banks look at this type of scenario? Sorry if this is a silly question , I really have no idea.

Thanks for any information
for the love of all things sacred..Minto can barely scrape by building cookie cutter houses are you seriously thinking of having them build a custom crooked house?
__________________
NO longer with Xtreme Eavbestrough.. plz dont call the number given they have stolen it and refuse to give it back. PM for new number thanks
Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Builder deposit and downpayment West Nile Financing, Mortgages and Insurance 11 2011-07-25 12:42 PM
Free downpayment money? GTAbestHOMES Real Estate Questions 0 2008-12-08 08:59 PM
Custom home builders stonecontainer Ottawa 0 2008-07-25 10:54 PM
Custom Walk-in yesguy Stouffville - Mattamy On Main and Wheler’S Mill 3 2008-02-16 08:27 PM
conventional mortgage downpayment homie Brampton 0 2007-01-14 10:37 PM



All times are GMT -4. The time now is 07:28 PM.



Copyright © PHAND Corporation
This document may not be used elsewhere without the expressed written consent of PHAND Corporation.
*** There is no association between this website and any builder. ***

Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2019, vBulletin Solutions, Inc.