Land, construction, and the takeout. We structure financing across the project lifecycle and present it to lenders who understand how a build actually funds, draw by draw.
Construction financing is its own discipline. The loan is sized on cost and on the finished value, money is advanced in stages, and a lender wants confidence the project will complete and pay back. We package that story and manage the file through every draw. We are mortgage brokers, here to make the financing side clear so you can build.
A project runs through seven decisions, sometimes all of them inside eighteen months. We call them anchor points, and mapping them is where we start. See the seven.
A construction loan does not fund like a regular mortgage. Here is the general shape of it. These are illustrative starting points, not offers, and every project is underwritten on its own merits.
A build is rarely one loan. It moves through stages, and the right structure at each step protects your cash flow and sets up the next one. We plan the whole arc with you, not just the piece in front of you.
Financing to secure the site, structured so it can roll into the build rather than box you in.
Funding the work that makes a lot buildable, planned as a step toward construction.
The loan advances in stages against verified progress, sized on cost and as-complete value.
Carrying the project through finishing, occupancy, or sale, with the exit already mapped.
Refinance into a term mortgage or sell on completion. The takeout is built into the plan from day one.
We plan the takeout before the first advance. On every build, conventional or private, the exit is designed at the start rather than chased at the end. The exception is CMHC-insured construction, where the takeout is built into the same facility. Everywhere else, naming the next anchor point before you commit to this one is what makes the structure hold.
Where private capital fits. Conventional construction financing suits most projects and it is where we start. On some builds private capital is the more flexible way to fund the work: draws matched to the real construction sequence rather than a fixed schedule, and a decision that can move at the pace of the project. It costs more, so it has to earn its place in the budget, and we will tell you when it is the wrong tool. It is one option to review, never the default. How private capital works on a build.
Illustrative stages only. Not every project uses every stage, and structure is set per project after lender review.
For multi-unit and purpose-built rental, the takeout is often a long-term mortgage on the completed, leased-up building, and CMHC MLI Select is one program worth reviewing. Insured financing can mean longer amortizations and stronger sizing than conventional, which changes what a project can carry. We model the takeout early, because it shapes how you finance the build.
Compare MLI Select against standard and conventional sizing on a multi-unit takeout.
CalculatorSee how net income and debt coverage drive the long-term loan amount.
GuideHow CMHC-insured multi-unit financing works, in plain language.
GuideThe points-based program and what it can unlock for rental projects.
CMHC MLI Select is one option to review, subject to CMHC and lender approval, program criteria, and property review. Estimates are illustrative and not an offer, commitment, or guarantee of approval, amount, rate, or terms.
Construction and development files get declined for avoidable reasons: a thin budget, an unclear exit, a draw schedule that does not match reality. We have worked inside the lender, so we package the file the way credit needs to see it, and present it to lenders who actually do this kind of deal.
Time inside a Big 5 bank financing new construction and real estate development.
We read a construction budget and a cost-to-complete the way an underwriter will.
A grounded read on as-complete value before the file reaches a lender.
The draw schedule is built against the real construction sequence, and the takeout is planned before the first advance.
As part of TMG The Mortgage Group, we reach a broad range of construction and term lenders, with private and structured options to review when a project calls for it.
We also finance a lot of projects around this region, which means we know the people building them. Trades, quantity surveyors, lawyers who handle construction closings, and builders themselves. If your project is short a good one, ask us before you start calling around.
The site, the budget, the plans, the timeline, and the exit. Early conversations save deals.
We shape the loan to cost and value, map the draw schedule, and plan the takeout.
A complete file to lenders who fund builds like yours, with the credit story they expect.
Through advances, inspections, and conditions, to completion and into long-term financing.
A builder financing a single home for sale or a client. We structure the construction loan and the draw schedule around the build.
An infill or small apartment project. We size to cost and value and plan the move into long-term, sometimes CMHC-insured, financing.
From acquisition and servicing through construction, financed in stages with a clear exit at each step.
Illustrative examples only. We do not share client details.
Understand the structure, prepare the file, then bring us the project.
How draw financing actually works, advance by advance.
GuideHow financing changes from acquisition through construction.
GuideThe fundamentals of financing a small development project.
ChecklistWhat to gather before you apply, so the file moves.
CalculatorEstimate income and a rough loan size for the takeout on a multi-unit build.
CalculatorEstimate interest as funds advance, draw by draw, through the build.
CalculatorModel the long-term refinance that takes out the construction loan.
Funds are advanced in stages as the build progresses, not all at once. Each draw is typically inspected and verified against the budget and the work completed before money is released. We map the schedule with you so your cash flow holds through the build.
Often yes, sometimes as a first stage that rolls into construction financing. Land, servicing, and the build can be planned as connected stages with a clear path through to completion.
Usually on a mix of project cost and as-complete value, with a loan-to-cost limit. Lenders look hard at the budget, the cost-to-complete, your experience, and the exit. Any figure we use is illustrative until a lender reviews the file.
It depends on the lender and the project type. Some require a level of pre-sales or pre-leasing, others do not. Matching your project to a lender whose requirements you can meet is part of what we do.
The construction loan is paid out by the takeout, either a refinance into a long-term mortgage or a sale on completion. We plan that exit at the start, because the takeout is part of the structure, not an afterthought.
That is where the right lender and structure matter most. Where conventional construction financing does not fit, private and structured options are one path to review, never the default.
Loan-to-cost measures the loan against what the project costs to build. Loan-to-value measures it against the finished, appraised value. Construction lenders use both, and the lower of the two often governs how much they will advance. We model both so there are no surprises at funding.
Lenders typically hold back a portion of each advance until work is verified, and construction lien legislation can require holdbacks as well. It means you carry some cost ahead of reimbursement, which is exactly why we map the draw schedule against your cash flow before you start.
Cost overruns are one of the most common reasons a build gets into trouble, which is why lenders look for a contingency and want to see cost-to-complete at every draw. We build a realistic budget and contingency into the structure so an overrun is planned for, not a crisis.
Interest usually accrues on funds as they are advanced, not on the full loan from day one, and is often carried through an interest reserve or paid as you go. We estimate this with you so the carrying cost through the build is clear up front.
For purpose-built rental, CMHC-insured options such as MLI Select are worth reviewing as the takeout, and can offer longer amortizations and stronger sizing than conventional financing, subject to CMHC and lender approval. We model that exit early because it shapes how you finance the build.
Experience helps and lenders weigh it, but it is one factor among many alongside the budget, the contracts, the team, and the exit. We help present your background and project in the strongest, most accurate light for the right lender.
Land, construction, draws, completion, take-out, equity, and the next one. Each has its own financing and its own lender. We map the whole run before you commit to the site.
Mapping them is the easy half. The harder half is being reachable at the points in between, when there is no transaction on the table. That is what we mean by AnchorPoint.
Not sure which of these you are standing on, or how many are running at once? Tell us where you are and we will map out the rest of your anchor points with you.
Map Yours With UsTell us about the site, the build, and the timeline. A member of our team will follow up.
Construction and development financing is subject to lender review, project review, and supporting documentation. Submission of this form does not guarantee approval or financing.