My spouse and I have never had a mortgage. We're pre-approved for about a $600k mortgage, which we want to use to buy an older house to tear down and completely rebuild. The initial price on these houses will probably be less then $300k.
My question is: how would the mortgage work? Would it be a construction mortgage? Since we're buying and demolishing but never really living in it would that count? Would the first time buyer tax benefit as well as taking money out of rrsp for downpayment work? (How would the downpayment work here?)