Not sure if you guys handle construction loans, but perhaps you at least have some knowledge or advice to share.
I currently only own my primary residence (50s bungalow - zoned RC-2).
Current market value: ~$650K
Outstanding mortgage: $330K
Cash available (outside of RRSP and checking account): ~$50K
I'm interested in knocking down the bungalow and building a semi-detached. After construction, I'd like to sell one half to pay for the construction.
Very rough assumptions:
Costruction costs: ~$900K (tear down and build)
Sell second unit: ~$900K (depending on trim level, similar units in my neighbourhood are going for $800K-1.1M. I'd be aiming for a trim level in the mid range)
My T4 last year was ~$200K. My pay is going up this year so I'm expecting to beat that, but I'll just assume $200K gross for now.
With these rough numbers, would I qualify for a large enough construction loan? If not, how much more cash/equity would I need? What other info should I know?
Thanks for you time!