Construction Mortgage | Equity Lenders British Columbia

Construction Mortgage Draw Loans. Bank Said No!

Construction mortgage loans through banks are more difficult and have a lot more moving parts than typical home purchase or refinances. This is due to the risk factors associated with lending on homes that are currently incomplete. Construction mortgage down payments typically are more than traditional mortgages due to lenders requiring more loans to risk coverage. They typicly will lend based on the value of the home at the time not the future value, this is called The “Cost to Complete Basis”. These types of loans are released in what is called a Draw Schedule.


Construction Mortgage from $50,000 to $2,500,000 & more if required.

No Credit Home Equity LOC
Apply Here Equity Loans Construction Mortgage Vancouver BC


  • First draw – land only. Typically 50% – 65% financing of the land value
  • 2nd draw – Lockup stage, about 35% – 40% complete. Framing, doors and windows complete. Sometimes, lenders will allow a draw before this stage at around 15% completion once foundation has been completed.
  • 3rd draw – 65% completion. Plumbing, electrical rough in complete
  • 4th draw – 85% completion. Plumbing, electrical complete, drywall complete.
  • Final draw – 100%

Construction mortgages will also vary based on if you have a Qualified Home Builder or you are acting as your own general contractor where you sign contracts with sub trades.

Requirements of Application:

  • Signed and accepted copy of building contract
  •  One complete set of house plans and working drawings (blue prints
  • Site Plan showing legal description, dimensions of property in detail
  •  Confirmation Builder is a “New Home Warranty” builder
  • An Appraisal indicating final value once the home is constructed
  • Self-Builder
  • Copy of Land Contract if land is being purchased of copy of Title of land already owned
  • Resume confirming good knowledge of the home building process
  • One Complete set of house plans and working drawing (blueprint
  • Site Plan showing legal description, dimensions of property in detail
  • Copy of all Sub-Contracts which confirm Home Construction Costs
  • An Appraisal indicating final value once the home is constructed

Construction Mortgage Private Lenders – Draw Mortgage Lenders

In many cases a Private Construction Mortgage works best for builders due to the amount of red tape that can be eliminated by using funding from Private Lenders. On average Private Construction Mortgage Loans are faster to get approved and the draw management process is more flexible.

Expect to pay more for construction financing through a Private Lender. This is due to greater flexibility of draws higher funding amounts and the ability for private construction financers to offer 2nd mortgages for construction loans. Banks rarely or never will go in second position when advancing construction financing. Rather they feel more comfortable advancing on 1st mortgages.

Looking to get approved for a Construction Mortgage? Call us today and get your application approved.

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Vancouver 778-839-3963
Okanagan 778-476-5500

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Commercial mortgage  service areas in British Columbia (BC) Canada’s Lower Mainland of: Surrey BC , Vancouver, Richmond, Burnaby BC, Abbotsford, Chilliwack, Coquitlam BC Port Coquitlam, Pitt Meadows, Maple Ridge, West Vancouver, North Vancouver, Port Moody, New Westminster, Delta, Surrey, White Rock, Langley, Coquitlam, Mission, Or in the BC Okanagan  Armstrong Chase, Penticton, Revelstoke, Kamloops, Kelowna, Merrit, Salmon Arm, Vernon, As well as on the Isalnd Victoria, Saanich, Esquimalt, Oak Bay, Colwood, Langford, Sooke, Campbell River, Chemainus, Comox, Courtenay, Cumberland, Duncan, Ladysmith, Lake Cowichan, Nanaimo, Parksville, Port Alberni, Qualicum, Sidney, Cranbrook, Kimberley, Nelson, Castelgar, Trail, Revelstoke.