A short-term loan that funds the building or major renovation of a property, disbursed in stages (draws) as construction milestones are completed. Once building is finished, the construction loan is typically replaced with a permanent mortgage through a process called takeout financing. Interest is charged only on the amount drawn.
Related Articles
- Accounts Receivable Factoring: Cash Today, Not 60 Days
Turn unpaid invoices into same-day cash with accounts receivable factoring in Canada. Costs, approval speed, and when factoring beats traditional bank loans.
- ADUs in Canada: Double Rental Income, One Property
Add a basement suite, laneway home, or garden suite to boost rental income. Real construction costs, zoning rules, and financing options across Canada.
- Commercial Mortgage Rates Canada 2026: Current Guide
Current commercial mortgage rates in Canada explained. CMHC-insured vs conventional rates, factors that affect your rate, and how to get the best terms.
- Condo Construction Financing Canada 2026: Developer Guide
Condo construction financing in Canada: costs, pre-sales, draw schedules, lender requirements, and execution timeline for 2026 developers.
- Construction Financing for Apartments in Canada
Finance apartment construction in Canada with CMHC ACLP or conventional lenders. Loan stages, draw schedules, LTV requirements, and pro forma templates.
- Development Financing Canada 2026: Builder's Loan Guide
Complete guide to securing development mortgage financing for ground-up construction and major renovation projects in Canada.