Construction & Commercial Mortgage Loans in BC

Construction & Commercial mortgage loans through banks are more difficult and have a lot more moving parts than typical home purchase or refinances. We work with lender that have more creative options usually using a equity based model.

Commercial MortgagesConstruction & Commercial Mortgage

  • 1st & 2nd mortgage options
  • Retail Centres
  • Marijuana Grow-ops
  • Office
  • Mixed Use
  • Fully Tenanted Industrial
  • Condo Inventory
  • Lot Inventory

Construction draw mortgages call to discuss. Construction & Commercial Mortgage Loans 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 financiers 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.