Construction Mortgage

What is it?

Looking to build a new home with the help of a professional builder or contractor? If so, our Construction Mortgage may be your best way to make it a reality. This mortgage product is designed specifically if you are working with home builders to build your dream home and has mortgage option advances funds at different stages during the construction process.

Who is this for?

Our Construction Mortgage is ideal if you require financing to help cover the costs of building a new home with the help of a professional home building company or contractor.

Speak to our advisors and lock your guaranteed rate in today for 120 days - no commitments required!

A black mother and her young son build a bookshelf together.

Why choose a Construction Mortgage?

Money bill icon

Phased funding

Unlike a traditional mortgage where the entire loan amount is disbursed up front, our Construction Mortgage releases funds at different stages during the construction process. This helps to manage cash flow and ensures funds are accessible when they’re needed.

Low down payment

The minimum down payment for this mortgage project is only 5%.

What you need to know

bullet icon

Two interest rate options. During the construction period, you can choose between our floating rate at prime + 2.00% or a fixed, closed rate with a minimum term of three years.

bullet icon

Regarding eligibility. You’ll be required to provide plan specifications, contracts to build and cost estimates to decide your eligibility for this type of mortgage product.

bullet icon

Eligible properties: This mortgage option is only available for owned occupied (primary and secondary homes), single-family detached, and semi-detached homes. You cannot get this option for condominiums, revenue properties or properties with more than two units.

bullet icon

Paying back the money. While building, you’ll have to pay back the loan interest regularly. Once construction is complete, you’ll move to a traditional mortgage and decide between fixed or variable, open or closed, and what your payment schedule will be.

bullet icon

There are timelines. Construction must begin within 45 days of the mortgage being approved and must be completed within 12 months of the first disbursement. An extension can be requested for approval if the construction cannot be completed within the 12 months.

Lock in your future mortgage rate while your home is being built!

If selecting the floating rate interest rate option during the construction period, you also can lock in a fixed interest rate for your mortgage that will begin once your home is complete, up to 12 months in advance*. Your rate is guaranteed if rates rise; if rates drop, you can get the lower rate.

This rate guarantee is available on our Flex Feature Mortgage.

*12-month rate hold offer ends Nov. 1, 2024.

Is this right for you?

Right for you if you: 

  • Are hiring a professional builder. Our Construction Mortgage is specifically designed if you’re building a new home with the help of a professional builder or contractor.

  • Already own the land. This mortgage option requires that you own the land where the home will be built.

  • Have enough saved for the down payment. You’ll need a minimum 5% down payment, so it’s essential to ensure you have the required funds before applying.

Font Awesome Icons

May not be right for you if you:

  • Plan to build yourself. This option was created specifically if you plan to hire a professional home builder or contractor. If planning to build your home yourself, consider our Self-Builder mortgage option instead.

  • Don’t own land. Since proof of land title is one of the requirements of qualifying for a Construction Mortgage, those who don’t own land are ineligible.

To learn more about the options available through Construction Mortgages, book an appointment with your Financial Advisor or a Mobile Mortgage Specialist.

Meet our Mobile Mortgage Specialists

As a first-time homebuyer, we understand the importance of flexibility. Our Mobile Mortgage Specialists bring the branch to you, accommodating your schedule and providing personalized service, ensuring you can easily navigate the journey to your first home without any unnecessary stress.

Have questions? That’s what we’re here for!

A male employee with a beard is wearing a white dress shirt and smiling at a member.

Give us a call

Have questions about which mortgage option is most suitable for you?

A female employee with grey hair and glasses is smiling at a member.

Connect with us

Want to learn more about mortgages? Book an appointment with one of our advisors.