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Uncomplicated.
FACT SHEET
BwB Gateway Draw Partner Program
™
Financing home construction involves organization and planning, Bridgewater Bank can help you and your client through the process. Ask for our
complete BwB Gateway Draw Partner Brochure for further information.
OPTIONS
PRODUCT FACTS
PURPOSE
• New Construction: residential builder, general contractor, acting as own contractor
RATE
• Prime + 5% during construction
TERM
• During Construction (Draw Term) – Construction must be completed according to the draw schedule
• After Construction (End Term) – 1, 3 and 5 year, fixed, closed
AMORTIZATION
• Max. 25 years
LTV
• New home owner occupied purchase 1-2 units max. 95%
• New home owner occupied purchase 3-4 units max. 90%
• Self-build, owner occupied purchase 1-2 units max. 90%
• Mobile/Modular, owner occupied purchase max. 90%
CREDIT BEACON
• Min. 650 beacon
GDS/TDS
• 15% overrun must be available in ratios, liquid assets or line of credit
• GDS 39%, TDS 44%
• Must qualify at Bank of Canada 5 year benchmark rate
DOWN PAYMENT
• Min. 5% traditional
• Sweat equity can be considered up to the equal amount of cash down payment
PROPERTY TYPE
• Single family, duplex up to a 4-plex, modular or mobile home on owned land, acreage
• All builds in Alberta require new home warranty
• For self-builds with or without new home warranty, must be within 50 km of major urban centres with
minimum 50,000 population
BUILDING CODES AND
STANDARDS
• New construction must meet: National Building Code of Canada, Residential Standards of Canada and all
applicable municipal and provincial building codes
• New home warranty or manufactures warranty is required
ADVANCE STAGES
• Up to 3 interim advances plus final advance at completion
• No additional advances beyond 75% completion other than completion advance
PREPAYMENT EARLY PAYOUT
• During Construction (Draw Term) – 3% of the amount being prepaid
• Switch to another lender at completion available with finder’s fee & penalty waived, under following
conditions:
1. Must pay full mortgage insurance premium
2. 30 day notice prior to final advance
3. Must be paid out within 30 days of completion
• After Construction (End Term), with no switch notification (see point two above) – The greater of either 3
months interest and the IRD based on the difference between the mortgage interest rate and the yield on a
Gov’t of Canada Bond with a similar remaining term, plus 0.75%
FINDER’S FEES
• Without switch – Regular BwB FFs apply upon completion
• With switch – Mortgage up to $299,999 = $250 FF
Mortgage $300,000 or more = $500 FF
DOCUMENTS
Submit upfront:
• Schedule A – Construction Costs Schedule: self builds only
• Schedule B – Advance Schedule Report
• Schedule C – Document Checklist
Forms can be found at BwBportal.ca
• Min. 16 year
• No previous bankruptcies
Information subject to change without notice
1-866-243-4301
•
bridgewaterbank.ca
•
BwBportal.ca