Construction Financing

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

Is this for me?

If you are a permanent resident or citizen of Canada.

What is it for?

Building a new home on a piece of land or tearing down some or all of an existing home and building an upgraded one in its place. It's a fit if you are comfortable receving funds as construction progresses instead of all at once.

When you need a mortgage to build a house

Have you purchased a piece of land that you plan to build on? Do you want tear down your current home to build a new, updated one?Are your plans to construct a second home on your existing property? In all of these scenarios a construction mortgage, sometimes referred to as a builders mortgage, is the ideal solution.

How it works

A construction mortgage in Canada works differently from your traditional mortgage. Funds are given to you on a progress advancement basis. In other words, you “draw” on the full amount of the builders mortgage at specific stages of the construction project.

If you already own the land you want to build on, your first advance is given to you in the form of an equity takeout. If not, your first lump sum is provided to fund your purchase of a piece of land.

As you construct your new home and reach various predetermined levels of completion, you receive funds, called draws.


Plan it well

Devise an accurate plan for the new construction of your home because usually construction mortgages cannot be changed after the fact.

As you build, various home inspections and appraisals will be performed (usually at your cost) to ensure that the structure adheres to present-day code and to confirm your eligibility for the next draw.

Where 8Twelve Fits In

We’re your silent construction mortgage partners in the corner. Advising you on plans, documentation requirements, draw information and the most suitable construction loans on the market, we guide you through the process. We know building projects are complex as it is! That’s why we make it our top priority to secure the best possible mortgage to build your house, with top construction mortgage rates. One less thing to worry about.


Think you need a construction loan? Let us help.

Contact 8Twelve any time to discuss your planned construction project. Our experts are always happy to answer your questions and provide you with a superior mortgage experience that ensures you end up with the best loan for you and your vision.