Construction Financing
Building from the ground up? There’s a mortgage for that.
When You Need a Mortgage to Build a Home
Thinking of building your dream home from the ground up? Whether you’ve purchased land to build on, plan to tear down your current house for a modern rebuild, or want to construct a second property on your lot—a construction mortgage (also known as a builder’s mortgage) is the right financing solution.
How a Construction Mortgage Works
Unlike a traditional mortgage, a construction mortgage in Canada provides funds in stages, known as progress draws. Instead of receiving the full amount upfront, you access portions of the loan as your project reaches key milestones.
If you already own the land – Your first advance may come in the form of an equity takeout.
If you still need to purchase land – The initial draw is provided to fund that purchase.
During construction – Additional draws are released at predetermined stages of completion, helping you cover costs as the home takes shape.
This staged approach ensures funds are used properly and the build stays on track.
The Importance of Proper Planning
A construction mortgage requires careful preparation. Once it’s in place, changes are difficult to make, so it’s critical to:
Create a detailed construction plan in advance.
Budget accurately for all materials and labor.
Prepare for inspections and appraisals (typically at your expense) at each draw stage to confirm code compliance and lender requirements.
Thorough planning helps keep your project—and your financing—running smoothly.
Where Lendcentre Fits In
At Lendcentre, we act as your behind-the-scenes construction mortgage partner. Our role is to:
Advise you on planning and documentation.
Guide you through draw schedules and requirements.
Connect you with the most competitive construction mortgage rates available.
Simplify the financing process so you can focus on the build itself.
We know construction projects can be overwhelming. That’s why we make it our priority to secure the best mortgage solution possible—giving you one less thing to worry about while you bring your new home to life.