Construction Mortgage Brokers

Contact us today to learn about our construction mortgage options and how we can help you finance your construction project.

Your Construction 

Mortgage Broker

A construction mortgage can provide the financing you need to create the custom home you’ve been dreaming about. Jason Anbara works with multiple financial lenders that provide construction mortgage financing. We ensure you’re getting the best deal possible and that your project will be a success.

Construction Mortgage Options

In Canada, there are generally two types of construction mortgage options available for those looking to build a new home or complete significant renovations on an existing home: a construction mortgage and a completion mortgage.

Construction Mortgage

A construction mortgage is designed to provide funding to cover the cost of building a new home. You would pay interest only on the funds that have been advanced, and once construction is complete, the mortgage can be converted into a traditional mortgage.

Completion Mortgage

A completion mortgage is intended for clients who have already completed the construction of their new home or significant renovations to an existing home. With this type of mortgage, the lender provides a lump sum payment at the time of completion.

Construction Mortgage Rates

Construction mortgage rates can vary depending on a number of factors, such as the lender, the borrower’s creditworthiness, the amount being borrowed, and the length of the mortgage term. Generally, construction mortgage rates tend to be higher than traditional mortgage rates due to the increased risk associated with lending money for a construction project. The average construction mortgage rate can range from 3.25% to 5.5% for a variable rate mortgage and 4.25% to 6.5% for a fixed rate mortgage.

How it Works

We’ll walk you through the commercial mortgage process with precision so you can secure a loan that can ultimately help grow your business.

Determine Your Budget

Before applying for a construction mortgage, we recommend determining your budget and how much you can afford to borrow. This will depend on factors such as your income, expenses, and the cost of the construction project.

Shop Rates

We will review our network of over 67 lenders to connect with those that specialize in construction mortgages. From there, we’ll ensure they suit your needs based on the information you have provided to us.

Discuss Options

After we have researched and found a few options, we’ll help you narrow down the lenders to help you submit your application, which will typically require detailed plans and cost estimates for the construction project.

Obtain Approval

Once your application is submitted, the lender will review your information and provide you with pre-approval for the construction mortgage. This will give you an idea of how much you can borrow and the terms of the loan.

Close Mortgage

At this point, the loan will be finalized. The lender will then provide you with the funds to cover the cost of the construction project, which will be disbursed in stages as the project progresses.

Frequently Asked Questions

The transition from a construction mortgage to a permanent mortgage typically occurs once construction on a new home is complete. At this point, we’ll walk you through the process of refinancing the construction mortgage into a permanent one.

First, you’ll need to provide the lender with documentation that verifies the completion of the construction project and the value of the completed home. This typically includes an appraisal, which provides an estimate of the home's value based on its size, location, and other factors.

Once the value of the home has been established, we can refinance your construction mortgage into a permanent mortgage. This involves paying off the outstanding balance on the construction mortgage and obtaining a new mortgage that covers the full value of the completed home.

The terms of the permanent mortgage will vary depending on the lender and the borrower's financial situation. Typically, a permanent mortgage will have a lower interest rate than a construction mortgage, and the borrower will have a longer period of time to pay off the mortgage.

Apply Now and 

Get Approved Today

Don’t wait when it comes to building your dream home. Jason Anbara can help you with construction mortgages in Canada and transitioning to a permanent mortgage once the project is complete.