A construction mortgage finances an approved building project. Funds are commonly advanced in stages, called draws, as work progresses and lender conditions are met. The lender sets the draw schedule, documentation requirements and repayment terms. Plan how you will cover costs before each advance and repay or refinance the loan at completion.

There is no single requirement for every construction project. A lender may consider land value, existing mortgages, your cash contribution, construction costs and the estimated completed value. Owning the land can help, but it does not automatically mean the entire build can be financed.

Yes. You can start a financing discussion while preparing plans and permit applications. An initial review is not a funding commitment. The lender will specify which approvals and documents must be in place before closing or releasing construction funds. Confirm permit requirements with the municipality where you are building.

Some financing arrangements may accommodate land acquisition and the subsequent build, while others require separate financing stages. The answer depends on the property, approvals, available equity and lender. Discuss the purchase closing date and construction timeline together before committing to the site.

Potentially. The appropriate option depends on the scope of work, available equity, existing mortgage and ability to repay. A staged construction facility may suit a substantial project; other renovations may be better suited to refinancing or a home equity option. Compare total costs and funding access before choosing.

Additional advances and loan extensions are not automatic. A lender may require updated budgets, valuations or further borrower funds, and additional fees or interest may apply. Include a contingency in your budget and discuss changes with your broker and lender before you run short of funds.

It may be possible, depending on the project and lender. Expect a review of your equity, financial position, construction plan and repayment strategy. Alternative or private financing may carry higher costs or shorter terms. Being self-employed or having equity does not remove the need to meet the lender’s requirements.

The Mortgage Providers helps borrowers explore construction financing across the GTA, including Toronto, Mississauga, Brampton, Vaughan, Richmond Hill, Markham, Oakville and communities in Durham Region. Availability depends on the property and project. Share the address, budget and current stage so we can discuss the next steps.