Construction Mortgages
Construction Financing That Builds With Your Project.
Building a custom home or taking on a major renovation? Construction financing releases funds in stages as the project progresses, so you only pay interest on what you have drawn.
How It Works
Funds Released in Stages, Not One Lump Sum
A construction mortgage pays for your project as it is built. Instead of one lump sum, funds are released in draws as building milestones are completed and inspected, and you typically pay interest only on the amount drawn until construction is finished.
When the build is complete, the construction financing typically moves into a regular mortgage. We help you plan the budget, line up the right lender and keep the process on schedule from the first draw to the last.
Talk to a Licensed AgentAt a glance
Funding
Released in draws as milestones are completed and inspected
Interest
Typically charged only on the amount drawn
Projects
Custom homes, additions and major renovations
After the build
Typically moves into a regular mortgage
Projects We Finance
Whatever You Are Building, We Can Help
Every project has its own budget, timeline and risks. We match the financing to the work.
01
Custom Home Build
Build the home you have designed on land you own, with financing that follows the construction schedule.
02
Major Renovation
Large-scale remodels and gut renovations, funded in stages as the work is completed.
03
Home Addition
Add space to your existing home and fund each stage as it is finished.
04
Builder and Investor Projects
New builds and redevelopment for builders and investors. Tell us about your project and your experience.
The Draw Schedule
How Your Funds Are Released
01
Approval and Plans
Your lender reviews your plans, budget, builder and permits.
02
Foundation
The first draw is released once the foundation stage is complete and inspected.
03
Framing and Lock-Up
Funds follow as the structure is framed, roofed and enclosed.
04
Systems and Finishing
Further draws cover mechanical systems, drywall and interior and exterior finishes.
05
Completion
After the final inspection, remaining funds are released and the loan typically converts to a regular mortgage.
Draw stages and amounts vary by lender and project. We will confirm the schedule for your build upfront.
Get Ready
What Your Lender Will Want to See
Construction lenders manage more risk than they do on a standard home purchase, so they look closely at the project. A well-prepared file makes approval smoother.
Request a ReviewPlans and permits
Approved building plans and the permits needed to start.
A detailed budget
A line-by-line cost breakdown, ideally with a contingency for surprises.
Your builder
Contractor details and experience, or your plan if you will manage the build.
Your equity
Land you own or a down payment counts toward your share of the project.
Your finances
Income, credit and assets, reviewed much like a standard mortgage application.
A realistic timeline
A construction schedule that lines up with the draw stages.
How We Help
A Partner From Blueprint to Move-In
You focus on the build. We handle the financing side, step by step.
01
Plan the Financing
We review your project, budget and timeline in a free consultation and explain your options in plain language.
02
Match the Right Lender
We compare lenders experienced in construction lending and prepare a clear, complete submission.
03
Stay on Track
We help keep the paperwork moving so draws are released on schedule through to completion.
Common Questions
Construction Mortgage Questions, Answered
Can't find what you're looking for? Call us at (905) 409-4504 or send a message and we will get back to you quickly.
Ask a Question
How does a construction mortgage work?
Instead of one lump sum, funds are released in draws as building milestones are completed and inspected. You typically pay interest only on the amount drawn until construction is finished.
When do I start making payments?
During construction you typically pay interest only, and only on the amount that has been drawn so far. Your lender will confirm exactly how and when interest is charged.
Can I finance the land as well?
In many cases, yes, depending on the lender and your situation. If you already own the land, its value can count toward your equity. Tell us about your plans and we will outline your options.
What happens when the build is finished?
The construction financing typically converts into a regular mortgage. We help you choose a suitable rate and term for that stage so there are no surprises.
Can I be my own builder?
Some lenders will consider owner-builders, but many prefer an experienced contractor. Call us before you start so we can match you with the right lender.
Can I use a construction mortgage for a renovation?
Yes, for major renovations and additions, funds can be released in stages as the work is completed. For smaller projects, a home equity loan or refinance may be a better fit, and we will compare them for you.
Keep Exploring
Related Services
Commercial Mortgages
Financing for retail, office, industrial and multi-unit properties.
Learn more →
Purchase Mortgages
Get pre-approved and buy your first or next home with confidence.
Learn more →
Home Equity Loans
Borrow against the equity you have built in your home.
Learn more →