Term of loan
- No principal repayment during the construction phase, then usually 1.25% of the loan amount per year.
Use of the loan
- During the construction period:
- You will draw on your loan as the work progresses, upon submission of invoices for work completed.
- You will be charged interest only on the funds actually used to pay those expenses.
- Once the work is finished:
- The building loan will automatically be converted into a mortgage loan with the same interest rate.
- Interest and principal payments are made quartely.
When your loan reaches the end of its term, you are free to switch to a different BCV mortgage loan if you so choose.