Construction Financing

Building from the ground up? There's a mortgage for that.

A construction mortgage works differently from a traditional mortgage. Funds are advanced in stages as your build progresses.

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75%

Max LTV (construction)

Typical draw stages

12–18mo

Avg build timeline

65+

Lenders compared

How construction draws work

Unlike a traditional mortgage where you receive all funds at once, a construction mortgage releases money in stages called "draws" as your build reaches predetermined milestones. This protects both you and the lender by ensuring funds are only released as construction progresses.

Land Purchase

15–25%

Initial advance to purchase the lot or equity takeout if you already own it.

Foundation Complete

15–20%

Once foundation, weeping tile, and backfill are done.

Framing & Roof

20–25%

Structure is up, roof is on, windows installed.

Mechanical Rough-In

15–20%

Plumbing, electrical, and HVAC roughed in and inspected.

Completion

15–25%

Final inspection passed, occupancy permit issued.

Construction mortgage vs. traditional mortgage

Feature	Construction	Traditional
Disbursement	Progressive draws	Lump sum at closing
Interest during build	Only on drawn amount	On full amount
Inspections	Required at each draw	Appraisal at purchase
Conversion	Converts to standard at completion	N/A
Rate lock	Typically at completion	At approval

If you're planning smaller improvements to an existing home rather than a full build, a Purchase Plus Improvement or renovation financing program may be a simpler option. Use our mortgage calculators to estimate costs.

Is this for me?

✓ You are a permanent resident or citizen of Canada
✓ You've purchased land or plan to build on existing property
✓ You have building permits and approved plans
✓ You're comfortable receiving funds as construction progresses

Self-employed builders and contractors - we have specialized lender programs for you as well. Start your application today.

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