Funds will be disbursed by progress advances, subject to a progress inspection. It is important to remember that the interest rate is guaranteed for 120 days, therefore the first draw of funds must be prior to the 120 day commitment expiry.
When You Are Ready for an Advance, Please Follow These Steps:
- Contact your credit union or League Savings and Mortgage directly to advise us that you are in position to request an advance.
- We will ensure that all conditions listed on your Approval of Mortgage that were to be met prior to advance, are complete. An example would be a request for a water certificate.
- We will then request an inspection from the appraiser or CMHC. (This procedure will depend on whether the mortgage is high ratio or conventional).
- Once the inspection has been completed we will receive a report which will indicate the amount we can disburse. This amount will be determined by the percentage of work completed.
- We will then prepare the advance and forward it “In Trust” to your solicitor for disbursement.
The above procedure will take place on each advance until the property becomes 100% complete. At this time we will finalize any changes to the mortgage details that need to be made and ensure that you are on the repayment schedule.
League Savings and Mortgage
High Ratio (Mortgage):
An insured mortgage loan, usually insured with Canada Mortgage and Housing Corporation (CMHC), up to a maximum of 95% of the appraisal lending value or the purchased price of the property. A mortgage is considered high ratio if the borrower has less than 20% as a down payment.
A mortgage loan up to a maximum of 80% of the appraised lending value or the purchase price of the property, whichever is the lesser of the two.