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New Construction Mortgages in Canada

Whether you are building a custom home for your family or developing an apartment building as an investor, we specialize in construction mortgage financing with staged draws, builder coordination, and construction-to-permanent conversion. Our team manages draw schedules, arranges inspections at each milestone, and coordinates with your builder or development team to ensure funds flow on time. From single-family custom builds on land you already own, to multi-unit rental developments and large-scale apartment projects, we connect you with the right lenders and structure the financing for every stage of your project.

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Construction Financing

Build with Confidence — Homes and Apartment Buildings

Construction mortgages are more complex than standard purchases — whether you are building a custom home or an apartment building. Draw schedules, inspections, builder payments, and conversion to permanent financing all need to be coordinated. We've done it hundreds of times for homeowners and investors alike.

3-4
Draw Stages
20%
Typical Down Payment
50+
Lender Partners
166+
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Staged Draw Financing

Funds are released at each construction milestone after a satisfactory inspection — typically at foundation, framing, lockup, and completion. You only pay interest on what has been drawn, keeping carrying costs low during the build phase. Draw schedules are customized to your project's scope, whether it is a single-family custom home or a multi-unit apartment building.

Apartment Building & Multi-Unit

Construction financing for investors building apartment buildings, multiplexes, and multi-unit rental properties. We connect you with commercial lenders who evaluate projects based on projected rental income, development pro formas, and construction budgets. From 5-unit walk-ups to large-scale apartment developments, we structure the financing to match your project.

Construction-to-Permanent

One application, one closing, and one set of fees. Your construction loan automatically converts to a permanent mortgage when building is complete. For custom homes, this means a residential mortgage at pre-agreed terms. For apartment buildings, the takeout is structured as a commercial mortgage based on stabilized rental income. We lock in terms upfront so you are protected during the build.

Interest-Only During Construction

During the build phase, you only make interest payments on funds that have been drawn — not the full loan amount. For example, if your construction mortgage is $400,000 and only $100,000 has been drawn at the foundation stage, your monthly payment is based on just that $100,000. This applies to both homeowner and investor projects, keeping your carrying costs manageable throughout construction.

Builder & Project Coordination

We manage draw schedules directly with your builder, arrange independent inspections at each stage, and ensure funds flow on time. For larger multi-unit projects, we coordinate with your development team including architects, engineers, and project managers. Our team has worked with custom home builders, production builders, and apartment building developers across Canada.

Pre-Construction Purchases

Financing solutions for deposit requirements on new build purchases from developers — condos, townhomes, and multi-unit investor purchases. Deposits typically total 15-20% of the purchase price in staged payments over the construction period. We ensure your permanent mortgage is pre-approved and rate-held so financing is ready when the developer completes your unit.

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Requirements

Construction Mortgage Requirements

Construction mortgages involve more documentation and oversight than standard purchases — whether you are building a custom home or a multi-unit apartment building. Here is what lenders require and how we manage the complexity.

Requirements

  • Minimum 20-25% equity for custom homes, 25-35% for multi-unit apartment building projects — land equity counts toward the requirement if you already own the lot or development site
  • Detailed construction budget and project plan including a line-by-line cost breakdown for materials, labour, and subtrades — prepared by your builder or development team
  • Licensed general contractor with a proven track record — for apartment buildings, lenders also evaluate the experience of the development team and project manager
  • Building permits and municipal approvals must be obtained before the first draw can be released — for larger projects, site plan approval and development charges must also be addressed
  • Minimum credit score of 600 for A-lender construction programs, with alternative options for lower scores at higher rates
  • Proof of income sufficient to service the mortgage — for investor projects, lenders evaluate projected rental income from the completed building alongside personal financials
  • Property must be located in a lender-approved area — apartment building projects require detailed market analysis demonstrating demand for the rental units

How We Help

  • We connect homeowners with construction-to-permanent products and investors with commercial construction lenders experienced in multi-unit development
  • Our team manages draw schedules, coordinates inspections, and ensures funds are released on time — for projects of all sizes from custom homes to apartment buildings
  • We lock in permanent mortgage terms at the start of construction, protecting you from rate increases during the build period
  • If you own your land or development site outright, we leverage its full appraised value as equity — potentially reducing or eliminating the need for additional cash
  • For apartment building projects, we structure the takeout financing based on projected stabilized rental income so your permanent mortgage terms are optimized for cash flow
  • We build a 10-15% contingency buffer into your financing structure to cover unexpected costs like material price increases, scope changes, or construction delays
  • Our team reviews your builder's contract, construction budget, and development pro forma to ensure they align with lender requirements before you submit your application
FAQ

Questions About Construction Mortgages

Everything you need to know about financing custom homes and apartment buildings in Canada.

How It Works

Construction mortgages are released in stages (draws) as building progresses. Typically there are 3-4 draws: foundation/excavation, framing/roof, lockup (windows, doors, insulation), and completion. Each draw requires an independent inspection confirming work is complete before funds are released. You pay interest only on funds drawn during construction, which keeps your carrying costs low during the build period. This applies to both custom homes and multi-unit apartment building projects.
For owner-occupied custom homes, construction mortgages typically require 20-25% of the total project cost (land plus construction). Some CMHC-insured construction programs accept as little as 5-10% down for owner-occupied new builds. For investor projects like apartment buildings and multi-unit rentals, expect 25-35% equity depending on the scope and lender. If you already own the land, its equity counts toward your down payment.
Yes. We arrange construction financing for investors building apartment buildings, multi-unit rental properties, and mixed-use developments. Lenders evaluate these projects based on projected rental income, construction budgets, and the borrower's experience. Draw schedules for larger projects may include additional stages beyond a typical custom home build. We connect you with commercial and institutional lenders experienced in multi-unit construction across Canada.

Completion & Timeline

With a construction-to-permanent mortgage, your loan automatically converts to a regular mortgage at the pre-agreed rate and terms — no additional application, appraisal, or legal fees required. For apartment buildings and larger multi-unit projects, the takeout mortgage is typically structured as a commercial mortgage with terms based on the stabilized rental income once the building is leased up. We plan the permanent financing from day one.
Custom homes typically take 8-14 months to complete, while apartment buildings and larger multi-unit projects can take 18-36 months depending on scope. Most construction mortgages have terms of 12-24 months, with extensions available if your project encounters delays. We build buffer time into your financing structure and ensure your rate hold on the permanent mortgage covers the full expected construction timeline.

Costs, Land & Experience

Beyond the construction costs covered by your mortgage, budget for: land survey and soil testing ($2,000-5,000), building permits ($5,000-50,000+ depending on project size and municipality), utility connections ($5,000-15,000 for residential, significantly more for multi-unit), landscaping, and a contingency reserve of 10-15% of total construction costs. For apartment buildings, also factor in development charges, site plan approval fees, and potential environmental assessments.
Yes. If you already own the land, its appraised value serves as your equity contribution toward the construction mortgage. For example, if your lot is worth $200,000 and the total project cost is $800,000, the land provides 25% equity — meeting most lenders' down payment requirements without additional cash. This works for both homeowner builds and investor projects where you own the development site.
For larger projects like apartment buildings, most lenders prefer borrowers with some development or construction experience. However, partnering with an experienced general contractor and project manager can satisfy this requirement. We work with lenders who evaluate the strength of the overall project team — including your builder, architect, and project manager — rather than requiring you to have built before.

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