Development Mortgage Financing
Development and construction financing demands specialized expertise that most traditional lenders simply don’t have. At LendCity, we specialize in funding ground-up construction projects across Canada, the U.S., and Mexico—from single-family spec builds to multi-unit residential developments and mixed-use projects. We understand the complexities of construction draws, builder qualifications, project timelines, and cost overruns because we’ve financed these deals ourselves. Whether you’re breaking ground on your first development or you’re a seasoned builder expanding your portfolio, we know how to structure construction-to-permanent financing that gets projects funded and completed.
Traditional banks struggle with construction financing because of the inherent risk and complexity. They want perfect credit, massive down payments, and often won’t touch projects that are anything less than fully pre-sold. We work with a network of specialized construction lenders who understand real estate development and are willing to evaluate deals based on builder experience, project feasibility, and market fundamentals—not just current assets. From short-term bridge construction loans to help you acquire and start building immediately to long-term development financing for multi-phase projects, we find solutions that match your timeline and exit strategy. Our cross-border expertise means we can help you capitalize on development opportunities in Canadian, U.S., or Mexican markets.
You need a financing partner who understands construction—not someone who’s going to treat your development project like a standard mortgage. Our team has closed construction deals at every stage: land acquisition, pre-development, ground-up construction, and project stabilization. We know what construction lenders want to see, how to present your project for maximum approval odds, and how to negotiate terms that preserve your equity and cash flow through the build process. When you work with LendCity, you’re working with investors who understand that development projects are about creating value through construction, and we structure financing that supports that vision from dirt to certificate of occupancy.
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One Stop Shop
Discover the options
At LendCity, we provide the full spectrum of development and construction financing across Canada, the U.S., and Mexico. Whether you’re acquiring raw land for future development, securing construction financing for ground-up builds, using bridge loans to start building immediately, or scaling with portfolio construction loans across multiple projects, we have the lender relationships and expertise to structure the right solution. From land acquisition loans for site assembly to construction-to-permanent financing that seamlessly transitions from build to long-term hold, creative options like joint venture equity partnerships and mezzanine debt for maximum leverage, we match your development strategy with financing that works—regardless of project size, experience level, or market conditions.
Land Acquisition
Secure competitive financing for raw land purchases to assemble development sites across Canada, the U.S., and Mexico. We work with lenders who understand land banking strategies and can structure deals based on your development plans, not just current land value.
Pre-Development
Bridge the gap between land acquisition and construction start with pre-development financing that covers due diligence costs, architectural plans, engineering studies, permitting, and entitlements. Fund the critical early stages while securing your construction takeout.
Construction
Ground-up construction loans for residential, multi-family, and commercial projects. We arrange financing with experienced construction lenders who understand builder draws, cost-to-complete analysis, and project management requirements.
Construction-to-Permanent
Seamless financing that starts as construction debt and converts to permanent financing upon project completion. Eliminate the need for separate construction and takeout loans, saving time and closing costs.
Spec Development
Finance speculative construction projects without requiring pre-sales or tenant commitments. We work with lenders who evaluate deals based on builder track record, market fundamentals, and exit strategy feasibility.
Renovation/Conversion
Fund major renovation or building conversion projects that transform existing structures into higher-value uses. Perfect for adaptive reuse, gut renovations, or repositioning projects requiring construction-level expertise.
Bridge Construction
Fast-close construction financing that gets your project started immediately while you arrange permanent debt or complete pre-sales. Higher rates but maximum flexibility for time-sensitive opportunities.
Joint Venture Equity
Partner with capital providers who contribute equity in exchange for project ownership percentage. Preserve your cash, reduce personal guarantees, and scale your development capacity beyond traditional debt limits.
Mezzanine
Secondary construction financing that sits behind your senior construction loan, allowing you to increase leverage without refinancing. Higher rates but provides additional capital for equity preservation or project expansion.
FAQ
What’s the typical down payment for construction financing?
Down payment requirements typically range from 20-35% of total project cost depending on builder experience, project type, and whether you own the land. Experienced builders with strong track records may qualify for lower equity requirements, while first-time developers often need more skin in the game.
Can I get construction financing without development experience?
Yes, but you’ll need compensating factors. First-time developers can qualify with strong financials, a compelling project, experienced general contractors, and potentially a joint venture partner with development experience. We often help structure deals that bring experienced builders into the equation.
How do construction draws work?
Construction lenders release funds in phases (draws) as work progresses, typically monthly or tied to completion milestones. An inspector verifies work completion before each draw. You typically pay interest only on funds drawn, not the full loan amount.
What do construction lenders evaluate?
Lenders focus on your development experience and track record, detailed project budget and timeline, general contractor qualifications, market analysis and comparable sales, exit strategy (sell, refinance, or hold), and your liquidity reserves to handle cost overruns.
How long does construction financing approval take?
Timeline varies based on project complexity, but expect 60-90 days from application to closing for most construction projects. Bridge construction loans can move faster (30-45 days), while complex multi-phase developments may take longer due to additional due diligence.
Do you finance construction projects in the U.S. and Mexico?
Absolutely. We have lender relationships across all three countries and understand the unique requirements for cross-border construction financing. Whether you’re a Canadian developer building in the U.S. or vice versa, we can structure the deal.
What’s the difference between construction and construction-to-permanent financing?
Construction-only financing requires you to arrange separate permanent financing (takeout loan) upon completion. Construction-to-permanent financing starts as construction debt and automatically converts to permanent financing, saving you a second closing and associated costs.
Can I finance land acquisition and construction together?
Yes, through combined land-construction loans. If you already own the land, its equity can often count toward your down payment requirement. If you’re acquiring land specifically for development, we can structure financing that covers both acquisition and construction.
What interest rates should I expect on construction loans?
Rates vary based on project risk, builder experience, and loan structure. Currently, expect construction-only financing in the 7-12% range, while construction-to-permanent loans may run 6-10%. Bridge construction financing typically runs 9-15%+ due to speed and flexibility.
What happens if construction takes longer than planned?
Most construction loans include extension options, though they may come with fees and rate adjustments. Having adequate contingency reserves in your budget is critical. We help structure loans with realistic timelines and extension provisions to protect you from unforeseen delays.
