How do construction mortgage draws work?

Funds are released in stages (typically 3-5 draws) as construction milestones are completed. An inspector verifies the work before each draw is released. This protects both you and the lender.

What is Purchase Plus Improvements?

This program allows you to add renovation costs (up to 10-20% of the property value) to your purchase mortgage. It's ideal for buying a home that needs updates.

Do I need a contractor for renovation financing?

Most lenders require detailed quotes from licensed contractors for renovation financing. DIY work is generally not eligible for financed amounts.

What is the minimum down payment for a construction mortgage?

Construction mortgages typically require a minimum 20-25% down payment based on the total project cost (land plus construction). Some lenders may accept land equity as part of the down payment if you already own the lot.

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Construction & Renovation Financing

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Overview

Construction & Renovation Financing in Ontario

Building a custom home or undertaking a major renovation requires specialized financing. Construction mortgages work differently from standard purchases - funds are disbursed in stages as construction progresses. I guide you through the entire process, from initial planning to final occupancy, ensuring you have the right financing structure in place.

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Benefits

Why You Need a Specialist for Construction Mortgages

Progress draw mortgages for new construction
Renovation financing (Purchase Plus Improvements)
Construction-to-permanent mortgage conversion
Flexible draw schedules aligned with construction milestones
Financing for custom builds and major renovations
Guidance on builder agreements and cost estimates

Construction mortgages operate differently from traditional mortgages. Instead of receiving a lump sum at closing, funds are advanced in stages (called draws) as construction milestones are completed. This protects both you and the lender by ensuring funds are only released as work progresses and is verified by an independent appraiser.

There are several construction financing options available in Ontario. Custom build mortgages finance the construction of a new home from the ground up. Purchase Plus Improvements allow you to include renovation costs in your purchase mortgage. And renovation financing programs let existing homeowners fund major upgrades using their home equity.

Construction mortgages require detailed planning, including approved building plans, contractor quotes, project timelines, and a completion budget. We work with specialized construction lenders who understand the unique requirements of building projects across Brampton, Toronto, and all of Ontario to find you the most competitive rates and flexible draw schedules.

How It Works

How Construction Mortgage Financing Works

We have streamlined the mortgage process to make it as smooth and stress-free as possible.

Project Review

We review your construction plans, cost estimates, and builder qualifications.

Financing Structure

We design a financing structure with the right draw schedule for your project.

Lender Approval

We secure approval from a lender experienced in construction financing.

Construction Monitoring

We coordinate inspections and draws throughout the construction process.

Areas We Serve

Construction Financing Across the GTA & Ontario

We provide construction & renovation financing services to clients across the Greater Toronto Area and all of Ontario. In-person and virtual consultations are available.

Find Your Nearest Office

Brampton

Toronto

Mississauga

Vaughan

Markham

Richmond Hill

Oakville

Burlington

Hamilton

Oshawa

Whitby