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Updated Jun 2, 2026

Mortgage Solutions · Construction

Building your dream home, one stage at a time.

When you buy mainly for the land — to tear down and rebuild, or build new on an empty lot — a standard mortgage doesn't fit. A construction mortgage funds the build in stages, releasing money as the house actually rises, then converts to a normal mortgage when you move in.

◆ How funds release · typical build
1Foundation poured15%
2Lock-up · roof & windows40%
3Interior · drywall & systems65%
4Completion · move-in ready100%

You pay interest only on what's been advanced — so the cost ramps up as the build does.

▍ The draw schedule

Money that arrives as the house does.

A construction mortgage isn't handed over at closing — it's released in draws, each one after an inspection confirms the stage is built. Set your land and build numbers, then step through the build to watch the funds advance and the interest-only payment climb.

Land / lot value$450,000
Construction budget$600,000
Build-phase rate7.50%
Build progress · funds advanced 15%
Foundation
Lock-up
Interior
Total project cost
$1,050,000
your lot + the build
Est. interest over the build
$20,625
interest-only · ~10-month build
Draw 1 of 4

Foundation

Excavation, footings, and the foundation are complete. The first draw releases after an inspection confirms the pour.

Advanced this stage$67,500
Cumulative advanced$67,500
Interest-only payment now$422/mo

Illustrative draw percentages (15 / 25 / 25 / 35). Actual schedules vary by lender and builder; some use cost-to-complete inspections instead of fixed stages. We line up the schedule with your builder's cash-flow needs.

Want a draw schedule built around your project?

Send us your lot and build details and we'll map the real numbers to your builder's timeline — and line up the lenders who'll fund it.

Plan my build

One loan, two lives

Build first, then convert.

A construction mortgage lives two lives: a short, interest-only build phase while the home goes up, then a conversion to a regular mortgage the day it's complete and you take occupancy.

Phase 1 · While you build

Construction phase

Interest-only · ~6–12 months
  • Lender approves you on the as-completed appraised value — what the finished home will be worth, not the bare lot
  • Funds release in draws after each stage passes inspection
  • You pay interest only on the amount advanced so far, so payments start small and grow
  • The lot you already own usually counts as your down-payment equity
Phase 2 · Once you move in

Completion mortgage

Regular amortizing · standard rates
  • On occupancy, the construction loan converts to an ordinary mortgage
  • You start paying principal + interest at standard A-lender rates
  • We line up the conversion before the build ends so there's no gap or re-qualification scramble
  • Insured options can take you to as little as 5–10% equity on the as-completed value
Build phaseCompletion mortgage

When you're buying for the land

When construction financing fits.

If there's no finished home to mortgage on day one — you're creating one — this is the structure built for it.

Buying a lot to build new

You've found the right piece of land and want to build a custom home from the ground up.

Tear-down and rebuild

Buying an older house mainly for the lot, planning to demolish and replace it with a new build.

Major additions

A second storey, a large extension, or a gut rebuild substantial enough that a regular reno loan won't cover it.

Owner-builder projects

You're acting as your own general contractor — some lenders allow it with the right experience and documentation.

Custom & spec homes

Working with a builder on a one-off custom home, or a small-scale spec build.

Not for a finished home

Buying a move-in-ready house? That's a standard purchase mortgage — simpler and cheaper.

The land is the foundation of the deal — literally. If you already own the lot outright, that equity usually covers your entire down payment, and the construction draws fund the rest. We'll model exactly how much you need to bring.

Build files are coordination files

What we do.

Construction lending has more moving parts than any other mortgage — builder, appraiser, lawyer, and lender all have to stay in step. That coordination is the job.

1

Find lenders who fund construction

Most banks shy away from build files. We work with the A-lenders, credit unions, and private lenders who actively want them — and know which suits a custom build versus an owner-builder.

2

Build the as-completed appraisal case

Approval hinges on what the finished home will be worth. We brief the appraiser with your plans, builder contract, and spec sheet so the value reflects the real project.

3

Structure the draw schedule with your builder

We align the lender's draw stages with your builder's cash-flow needs, so trades get paid on time and the project never stalls waiting on funds.

4

Manage inspections and advances

Each draw needs a progress inspection before funds release. We coordinate timing with the lawyer and lender so advances land when they're needed.

5

Lock in the completion mortgage early

Before the build wraps, we arrange the conversion to a standard mortgage at the best available rate — no gap, no last-minute re-qualification.

We're a brokerage, not a bank — we compare construction programs across 30+ A-lenders, credit unions, and private lenders. On most lender-funded files our compensation comes from the lender; some specialized cases — such as private or owner-builder lending — may involve a broker fee, which we'll always disclose and explain upfront before you commit.

Ready to build?

Free, no commitment. Tell us about the lot and the build — we'll model the draw schedule, the equity you'll need, and which lenders will fund it.

Speak with a broker

Common questions

Construction questions, answered.

Not sure which option fits?

Tell us about your situation. We'll match you to the right product and lender.

Start pre-approval
Plan my build Call