Private construction loans.
Land, draws, rescues, and the builds banks won't touch — funded at private speed with the institutional exit built in. BC and Alberta.
Construction is where financing problems get expensive fastest: a stalled site burns carrying costs, trades scatter, and liens turn a budget problem into a legal one. Private construction capital exists for the moments institutional money can't serve — the land that isn't entitled yet, the sponsor who doesn't fit, the build that outran its budget — and it works for one reason: the exit to cheaper institutional money is designed in before the first private dollar advances.
From bare land to rescue missions.
Raw and entitled land carried while rezoning, permits, and design get shovel-ready.
A build that outran its budget re-capitalized before the trades walk and the liens land.
Owner-builders, spec builds, and sponsors banks decline — funded on the project's merits.
Work-in-place ahead of the lender's advance — bridged so the site never stalls.
The stretch from final draw to occupancy to permanent financing, carried cleanly.
Closing on the lot and breaking ground on private capital while institutional approval catches up.
The private phase — and its exit.
The same draw discipline as a bank — inspections, holdbacks, cost-to-complete — at private speed. The interest reserve is built into the loan so the project isn't feeding payments mid-build.
The bridge from assembly to build: we line up the construction take-out early so the land loan pays out cleanly the day the project is shovel-ready.
Rescue files refinance out once the budget is re-proven; land files graduate at shovel-ready; fast starts convert as soon as the institutional approval lands. The exit is agreed before the private dollar funds.
Rates and leverage are typical ranges for illustration — last reviewed July 2026. The draw process, five-stage schedule, and BC-vs-Alberta lien holdback rules live on our main construction page.
Files like yours.
Common private-build questions.
When does a private construction loan make sense?+
Four classic moments: the land isn't yet entitled or shovel-ready, the sponsor doesn't fit bank covenants, the timeline is faster than a bank can close — or an existing build has a cost overrun and needs a rescue. Pricing typically runs 9%–13% plus a 1%–3% placement fee, with the interest reserve capitalized so the project carries itself.
My build ran over budget and the bank won't advance — what now?+
That's the rescue file, and speed decides how well it ends. Private capital re-margins the project against as-complete value, pays the pressing trades before liens land, and carries the build to completion — then a refinance at occupancy pays it out. The earlier we see it, the more equity survives.
Do private construction lenders use draw schedules too?+
Yes — the discipline is the same as institutional: an appraiser inspects work-in-place and cost-to-complete before each advance, and the statutory builders-lien holdback applies (10% in both BC and Alberta, with different release timelines — see our main construction page for the province-by-province detail). What changes is the speed between inspection and money.
Can I finance land I want to build on later?+
Yes — typically to about 50–65% of land value, lower for raw land and higher once it's entitled or serviced. The land loan is structured as the first phase: we line up the construction take-out early so it pays out cleanly at shovel-ready instead of becoming an expensive long-term hold.
Owner-builders keep getting declined — is private the answer?+
Often it's the bridge to one. Many banks decline owner-builder files outright; credit unions and a few others fund them at reduced leverage. Private capital can carry the build — same inspections, same holdbacks — with the institutional refinance at completion as the exit. In BC, the Owner Builder Authorization still applies regardless of who lends.
How fast can private construction money move?+
With an appraisal and budget in hand, days to a couple of weeks to first advance — and on a rescue, the first advance is usually aimed at whatever keeps the site alive: the trades, the arrears, or the lien about to register.
Project needs capital? Have these ready.
On rescues, bring the ugly version — the real spent-to-date and the real cost-to-complete. Surprises kill rescues; honesty funds them.
- Project budget — hard costs, soft costs, spent-to-date, and cost-to-complete
- Land title, purchase contract, and what's owing on it
- Drawings, permits (or status), and builder details
- An 'as-complete' appraisal if you have one — we can order
- For rescues: the current lender position, draw history, and any liens or holdbacks
- Your exit — take-out approval, sale plan, or refinance target and date
- Personal net-worth statement and corporate details if applicable
Site stalled or land waiting? Move now.
Send the budget, the title, and the plan — we'll tell you the same day whether private capital carries it and what the exit looks like.