Construction Financing
Turn Your Dream Build Into Reality with Flexible Construction Financing.
Building a custom home or undertaking a major renovation is an exciting journey, but financing a construction project requires a specialized approach compared to standard real estate purchases. From managing stage-by-stage fund releases to structuring your budget, professional guidance ensures you have the financial support needed from breaking ground to final completion.
What Is Construction Financing?
A construction mortgage (often called a draw mortgage) is a loan designed to fund building a new home or carrying out a major renovation, rather than buying a finished, move-in-ready property. Instead of advancing the full loan amount at once, the lender releases funds in stages, known as “draws”, as each construction milestone is completed and verified by an inspector or appraiser.
Draws are paid after each stage is complete, not before, so you or your builder need to fund the costs of each stage up front, typically from your own cash, the equity in your land or a line of credit. Lenders also hold back a portion of each advance to comply with BC’s Builders Lien Act. Planning for this cash flow is one of the most important parts of a successful build.
Benefits of Construction Financing
- Finance your custom home build or major renovation with a loan structured around construction milestones.
- Pay interest only on the portion of funds actually drawn during the building phase to manage monthly cash flow.
- Protect your investment through scheduled progress inspections before each funding release.
- Access financing options for owner-builders, homeowners working with a general contractor, and custom builds.
- Plan your cash flow between draws with a clear budget, so each stage of construction is funded on time.
- Move forward with expert guidance and a clear, stage-by-stage financial strategy.
Our Construction Financing Solutions
Draw-Based Mortgage Funding
Receive funds in structured instalments tied to key construction milestones, such as foundation, framing, lock-up and completion, with each advance released after the stage has been inspected.
Custom Home Build Financing
Get step-by-step assistance designing a mortgage package tailored explicitly to building a brand-new, customized home from the ground up.
Major Renovation & Addition Loans
Secure financing to completely overhaul, expand, or structurally transform an existing property to match your evolving lifestyle needs.
Builder & Contractor Collaboration
Collaborate smoothly with licensed contractors and builders who understand the specific administrative and inspection requirements of draw mortgages.
Interest-Only Construction Terms
Minimize your ongoing financial burden during the active build phase by paying interest only on the drawn balance until construction is fully completed.
Permanent Mortgage Transition Planning
Receive expert guidance on seamlessly converting your active construction loan into a standard, long-term residential mortgage once the build is finalized
