Construction Mortgage Ontario

Construction Mortgage Ontario: Interest only payment over the construction time. 80% of Land value for first draw – or we help you purchase the land outright.

Two options to Build Your Dream Home

  • Self Build – Typically when the homeowner is coordinating the build with independent contractors and when the owner is not a licensed builder.
  • Managed Build – When the entire project is coordinated and overseen by a licensed home builder who also registers the home with TARION.

General Details for Self Build or Managed Build Construction Mortgage

  • Self-Build financing applications must include cost estimates and evidence that the borrower has the necessary experience to complete the project
  • Managed Build applications must also provide a portfolio for reference and to prove experience.
  • Typical documentation includes:
    • Insurance coverage
    • Building permits
    • Appraisal / inspections
    • and final inspection.

Construction Mortgages Ontario

Benefits of our Construction Mortgage

  • Throughout construction the mortgage is INTEREST only payments until either the interest adjustment date is reached – or the property is 100% complete
  • Only ONE registration for the mortgage regardless of the stage of advances
  • UNLIMITED DRAWS. First 4 Draws are free. $100 fee applies for over 4 draws.
  • Switched to a typical residential mortgage with current best rates at the end of construction.

Process for financing

  • Require estimates for
    • Shell Stage
    • Services (Hydro/Gas)
    • Well / Septic or Municipal hookup
    • Flooring / Drywall & Finishes

Restrictions & Cost.

  • Property must be residential.
  • Follow construction contract for builder mortgages/ 6 months for self-build.
  • First advance is maximum 80% of the land value or land purchase price.
  • Initial advance used to purchase the lot or start construction.
  • Max fee is .85% of the mortgage but capped at $3000. (eg: $350,000 mtg = $3000 fee)

Case Study

Study: Home East of Stouffville.


  • Client had 100k to build their dream home.
  • Land Price was 500k, estimated build cost 500k.


  • Purchased land with 100k down, we financed 400k.
  • Client drew money 5 times at each stages and finished project in 6 months.
  • Client only paid Interest of 3.49% of the actual amount borrowed.
  • We switched Client to a 5 Year Variable at 2.20% at the end of Construction.

Apply for construction mortgage

It takes only a few minutes. No hassle, no obligations

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