Take-out financing.
The build's final trade: construction money out, permanent money in — shopped, timed to the holdback, and structured around your next move. BC and Alberta.
Completion quietly reverses the power dynamic of the whole build. Through construction, lenders held the leverage — draws, inspections, holdbacks. The day the occupancy permit lands, it flips: the risk they priced for is gone, the finished property appraises at its real value, and your file is suddenly one every lender wants. The take-out is where that leverage gets spent — or wasted on the first conversion offer that shows up. We make the moment compete.
Every version of the exit.
The build's final act: the draw mortgage becomes (or is replaced by) the long-term one.
Refinancing 9–13% build money into conventional pricing the moment occupancy allows.
New rental buildings refinanced onto long-term debt once the rent roll is real — including insured programs.
Staying open at the construction rate while you sell, season, or wait out a rate view.
Take-outs scheduled around the lien-period release, so the last dollars arrive when the law allows.
Qualifying at the test for the best rate — or paying a small premium to skip it.
Three ways off construction money.
Convenient, and convenience has a price: the lender knows moving mid-conversion is annoying. We price the market against their offer anyway — that's the whole leverage of the moment.
The finished house appraises at its real value — often well above cost — which resets the leverage math in your favour. This is where private build money gets cheap again.
On MLI Select construction files the take-out was underwritten with the build; on conventional builds, stabilization is the moment to graduate into insured pricing.
Rates, ratios, and program rules are typical ranges for illustration — last reviewed July 2026. Compare lock-vs-open scenarios with the payment calculator and penalty calculator.
Files like yours.
Common completion-financing questions.
What happens to my construction mortgage when the build finishes?+
It converts to a permanent mortgage — either with the same lender or by refinancing to a new one. You can stay on a short open term (around 18 months) at the construction rate, or lock into a 3–5 year term: passing the stress test earns the best pricing, or a small premium — often about 0.20% — skips it.
Why wouldn't I just take my construction lender's conversion offer?+
Sometimes you should — after it's been made to compete. Completion is a moment of maximum leverage: the risk the construction lender priced for is gone, the finished house appraises at full value, and every lender in the market would happily take the file. An unshopped conversion offer knows none of that.
How do I exit a private construction loan?+
At occupancy, with an as-built appraisal: the finished value — not your build cost — sets the new lending base, and 9–13% private money refinances into conventional pricing. The exit was designed when the private loan funded; completion is just executing it.
How does the builders-lien holdback affect my take-out?+
The final 10% stays held until the provincial lien period closes — released 55 days after completion in BC, and 60 days after the substantial-performance certificate in Alberta. Take-out timing has to respect those dates; funding plans that ignore them come up short exactly at move-in.
Do I have to pass the stress test on the take-out?+
For the best pricing, yes — the greater of contract + 2% or 5.25%. Several lenders will waive the prescribed test in exchange for a modest rate premium, often around 0.20% — worth it or not depending on your numbers, which is a calculation we run rather than a guess.
When should the take-out be arranged?+
Before ground breaks, honestly — the exit is part of the original structure. In practice we re-engage lenders 60–90 days before expected completion so the appraisal, approval, and holdback timing all land together at occupancy.
Approaching completion? Have these ready.
- Construction loan statement — balance, rate, and any conversion terms already promised
- Occupancy permit (or its expected date)
- As-built appraisal — we can order; it's the document that resets your leverage
- The 10% holdback status and the lien-period dates for your province
- Income documents for qualifying — or the stress-test-skip premium conversation
- For rentals: leases and the stabilizing rent roll
- Your rate view — open vs locked is a strategy choice, not a default
Occupancy in sight? Spend the leverage.
Send the construction statement and the expected completion date — 60 to 90 days out is the sweet spot — and we'll make the market compete for your finished project.