Mortgage Professor
Construction Mortgages in Ontario
Building your home is different from buying one — and so is the financing. We structure construction draws that keep your project funded from foundation to finish.
Building your home is different from buying one — and so is the financing. Construction mortgages fund your build in draws as construction progresses, with interest-only payments during the build phase, then convert to a standard mortgage at completion.
At Mortgage Professor, our team handles new builds, custom self-builds, major teardown-rebuilds, and large-scale renovations with proper draw structuring. We work with A lenders, B lenders, credit unions, and private construction lenders to find the right fit for your project.
Construction financing requires more planning than a standard purchase — project review, draw schedules, builder credentials, and completion timelines all factor in. We guide you through every step, from initial approval through final draw and conversion.
Quick Facts
Understanding Your Options
What is a Construction Mortgages?
Construction mortgages are staged financing released in 3-5 draws based on construction milestones. Unlike a standard mortgage where you receive full funds at closing, construction funds are released progressively as work is completed and inspected.
Progress-Draw Mortgage
The most common structure. Lender releases funds at each construction stage: foundation complete, framing complete, lockup (roof, windows, doors), drywall complete, and final completion. Each draw requires an inspection confirming work is done.
Completion Mortgage
An alternative where the lender funds only at occupancy/possession. This works when you have other financing during construction (line of credit, existing equity) and just need the permanent mortgage at the end.
Construction Costs During the Build
During construction, you pay interest only on funds that have been drawn. As draws are released, your monthly interest payments increase. At completion, the construction mortgage converts to a standard amortizing mortgage.
“Your home equity is a powerful financial tool. Let us help you use it wisely.”
The Process
How It Works
Project Review
Architectural plans, detailed budget, builder credentials, and timeline reviewed and approved.
Draw Schedule Setup
3-5 construction stages structured around your specific project milestones.
Progress Draws
Funds released as each stage is completed and inspected by the lender's appraiser.
Conversion at Completion
Construction loan converts to standard mortgage once occupancy is achieved.
Key Benefits
Why Choose This Option
Fund Builds Up to 75-85% LTV
Construction mortgages can finance up to 75-85% of the completed (as-improved) property value.
Interest-Only During Construction
Pay interest only on drawn amounts during the build phase — no principal payments until completion.
Multiple Lender Options
A lenders, B lenders, credit unions, and private construction lenders available depending on project.
Self-Build Supported
Acting as your own general contractor? Lender options exist for qualified self-builders.
Major Renovation Financing
Construction mortgages aren't just for new builds — major renovations and additions qualify too.
Flexible Draw Schedules
Draw milestones customized to your project's actual construction sequence.
Eligibility
Who Qualifies
Construction mortgage qualification involves both borrower assessment (income, credit) and project assessment (plans, budget, builder, timeline). Both need to pass lender requirements.
Typical Requirements
- Approved building permits and architectural drawings
- Detailed construction budget with builder quotes
- 15-25% down payment or land equity contribution
- Standard income and credit qualification (alt/private options exist)
- Realistic completion timeline (typically 6-18 months)
Not sure if you qualify? Get a free assessment.
Questions & Answers
Frequently Asked Questions
Request Your Free Consultation
Share a few details about your situation and our team will reach out within one business day. No obligation, no pressure — just expert advice tailored to your needs.
Explore Other Solutions
Find the right mortgage product for your needs
Speak with a Professor
Schedule a complimentary 30-minute consultation with our team. We'll review your situation, walk you through the options, and outline a path forward — no obligation.
Or call 647-955-9400
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