From ground break to completion.
Construction financing requires draw schedules, cost-to-complete analysis, and lender relationships most brokers don't have.
CMHC-insured, conventional institutional, or private — we build in all three.
Construction financing splits by capital source. The right lane depends on whether you're building rental for the long hold, owner-occupied, spec, or value-add.
Which construction lender is right for your project?
Three capital lanes, three very different cost-of-capital, leverage and underwriting profiles. We size the project against all three before you sign a builder contract.
Cheapest capital. Requires firm budget, fixed-price contracts, and full income/net-worth covenant.
Lowest cost of capital in Canada for rental construction. 9–12 month commitment runway — start early.
Used when timing, asset, or borrower doesn't fit a bank. Refinanced or paid out at completion.
The five-stage construction draw schedule.
BC and Alberta institutional construction mortgages typically release funds across five inspected milestones. Each draw is appraiser-verified and subject to a 10% builders-lien holdback.
Excavation, footings, foundation complete and backfilled. Appraiser confirms slab/foundation pour.
Framing, roof, windows, and exterior doors installed. Building is weather-tight.
Rough mechanical (plumbing, HVAC, electrical) inspected and approved; insulation and drywall complete.
Cabinets, flooring, fixtures, trim, paint. Mechanical and electrical finished and tested.
Final occupancy permit, holdback release (35–55 days post substantial completion per provincial Builders Lien Act), and take-out mortgage funds.
Common construction-financing questions.
What is a construction mortgage in BC?+
A construction mortgage (also called a draw mortgage or progress-advance mortgage) funds a new build in stages instead of one lump sum. The lender advances money at pre-defined construction milestones — typically foundation, lock-up, drywall, finishing, and completion — and you pay interest only on funds drawn. At completion the construction loan converts to (or is refinanced by) a permanent mortgage.
How much do I need to put down on a construction loan in BC?+
Most institutional construction lenders in BC want 25–35% equity in the project — either cash, land equity, or a combination. Owner-builders and spec builds are usually capped at 65% loan-to-cost. CMHC MLI Select multi-family construction can go as high as 95% loan-to-cost. Private construction lenders can sometimes cover 100% of hard costs if you bring the land free-and-clear.
What's the difference between a construction loan and a construction mortgage?+
In Canada the terms are used interchangeably. Both describe a draw-based facility that funds vertical construction. A 'construction mortgage' is registered against title from day one and converts to a permanent mortgage at completion. A 'construction loan' may be a short-term unregistered facility that gets refinanced into a separate take-out mortgage. Most BC banks and credit unions structure their product as a true construction mortgage — one registration, one closing.
Can owner-builders get a construction mortgage in BC?+
Yes — but you'll need to be registered with BC Housing under the Homeowner Protection Act, carry course-of-construction insurance, and meet stricter draw oversight. Loan-to-cost is typically 5–10% lower than a builder-built equivalent, and many banks decline owner-builder files entirely. Credit unions and a handful of mono-lines are the usual home. Private capital fills the rest.
How long does construction financing take to arrange?+
Plan on 30–60 days for a conventional residential construction mortgage, 60–90 days for private construction debt with land already owned, and 9–12 months for a CMHC MLI Select commitment on a multi-family project. The build itself sets the term — usually 9–18 months residential, 18–30 months multi-family.
What is a draw schedule and who controls it?+
A draw schedule is the pre-agreed payment plan tied to construction progress (foundation → lock-up → drywall → finishing → completion). An independent appraiser or quantity surveyor inspects each stage and signs off before the lender releases funds. The lawyer also holds back 10% of each draw under the BC Builders Lien Act until the 55-day lien window closes.
Does CMHC insure construction financing?+
Yes — through MLI Select, CMHC's commercial multi-family program. It covers 5+ unit purpose-built rental construction with up to 95% loan-to-cost, 50-year amortization on the take-out, and the lowest commercial spreads in Canada — in exchange for affordability, energy-efficiency, or accessibility commitments. CMHC does not insure single-family construction.
When does a private construction loan make sense?+
Private construction capital is the right tool when (1) the land isn't yet entitled or shovel-ready, (2) the sponsor doesn't fit bank covenants, (3) timing is faster than a bank can close, or (4) an existing construction loan has a cost overrun and needs a rescue. Pricing is typically 9–13% plus a 1.5–3% lender fee, with the interest reserve capitalized into the loan.
We work with developers, builders, and individual clients to structure financing that moves with the project — from land acquisition through to completion and take-out financing.
Both institutional and private construction lenders across BC and Alberta — conventional, CMHC, and private depending on the project and borrower profile.
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