Single-family to fourplex construction mortgages.
New home construction from a single-family custom build to a duplex, triplex, or fourplex — financed draw by inspected draw, from ground break to keys. BC and Alberta.
Building a house is the only mortgage where the collateral doesn't exist yet — so the loan is really a promise about a budget, a builder, and a schedule, verified one inspection at a time. The financing works beautifully when the three line up and painfully when they don't: draws arrive after the work, the holdback waits out the lien period, and the take-out has to be ready the day the occupancy permit lands. We structure all of it before the first shovel, so the money is never the thing holding up the build.
Every way to build a home.
A fixed-price contract with a registered builder — the cleanest construction file there is.
Two to four units still finances as residential construction — the last stop before commercial underwriting begins at five.
Building it yourself in BC requires the Owner Builder Authorization — and a lender who'll actually fund one. Fewer exist than you'd think; we know them.
Building to sell — underwritten on the project and your track record.
Adding rental dwellings — with projected suite rent helping you qualify.
Existing lot, new house — the land equity becomes your project equity.
The build's final act: converting to the permanent mortgage — see our dedicated take-out page.
Three ways to fund the build.
Cheapest construction capital. Five inspected draws — foundation, lock-up, drywall, finishing, completion — with the appraiser confirming work-in-place before each advance.
Many banks decline owner-builder files entirely; credit unions and a handful of monolines are the usual home, with private capital filling the gaps. Placement is the whole game here.
The fallback and the rescue — full detail on our private construction loans page.
Rates, ratios, and leverage are typical ranges for illustration — last reviewed July 2026. The five-stage draw schedule and BC-vs-Alberta lien holdback rules live on our main construction page.
Files like yours.
Common new-construction questions.
How does a construction mortgage pay for the build?+
In stages, not a lump sum: typically five draws at foundation (15%), lock-up (40%), drywall (65%), finishing (85%), and completion (100%), each released after an appraiser inspects the work in place. You pay interest only on what's been advanced — usually around Prime + 2% during the build.
How much do I need down on a new build?+
Institutional lenders finance up to 75% of total project cost — land plus construction — with the first advance up to 75% of land value, so plan on roughly 25–35% equity via cash, land, or both. Owner-builders sit lower at about 65% loan-to-cost. Land you already own free and clear often covers most of the requirement.
Can I build my own house without a general contractor?+
In BC, yes — after obtaining the Owner Builder Authorization from BC Housing before construction begins, and with course-of-construction insurance in place. The financing is the harder part: many banks decline owner-builder files outright, so the lender shortlist matters more than the rate sheet.
Does a planned basement suite or laneway home help me qualify?+
Often substantially: many BC lenders offset up to 90% of a legal suite's projected market rent against your qualifying payment. On a build with a laneway home plus a basement suite, that combined offset can meaningfully raise the approval.
Why does the lender hold back part of my final draw?+
The builders-lien holdback — 10% by statute in both BC and Alberta, released only after the provincial lien period closes (55 days after completion in BC; 60 days after the substantial-performance certificate in Alberta). It protects the project from trade liens; build those weeks into your move-in and take-out timing.
What happens when the house is finished?+
The construction loan converts to a permanent mortgage: stay open around 18 months at the construction rate, or lock a 3–5 year term — passing the stress test for the best pricing, or skipping it for a small premium, often about 0.20%. We map that exit before ground breaks; the detail lives on our take-out financing page.
Breaking ground? Have these ready.
- Detailed budget — hard costs, soft costs, and the 10% contingency
- Fixed-price contract or signed builder estimate; owner-builders add the BC Housing authorization
- Drawings, site plan, and building permit (or its status)
- Land title or purchase contract, and proof of your land/cash equity
- Home-warranty enrolment (builder builds) or course-of-construction insurance
- Income documents — T1s, NOAs, job letter or business financials
- 'As-complete' appraisal — we can order
- Suite plans, if projected rental income should help you qualify
Building it? Finance it before the shovel.
Send the budget, the lot, and the builder (or your owner-builder plan) — we'll map the draws, the holdback, and the take-out before you commit to anything.