How Construction Financing Works in Canada
Construction loans are different from regular mortgages. Instead of receiving the full amount upfront, funds are released in stages — as construction progresses. You usually make interest-only payments during the build, with the full mortgage kicking in after project completion.
Types of Construction Financing
Self-Build: Manage your own project, hire contractors, and oversee draws yourself.
Builder/Developer Build: Hire a registered builder to construct your home. Easier to finance and manage.
Custom Homes: Finance land purchase plus construction, often rolled into one loan.
Typical Draw Stages
• Draw 1: Land Purchase
• Draw 2: Foundation Completed
• Draw 3: Framing / Roof
• Draw 4: Lock-Up Stage
• Draw 5: Completion (Ready for Move-in)
Estimate Your Construction Financing Needs
Total Project Cost:
Loan Needed:
Estimated Monthly Interest Payment: