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Special Property Types
Not sure which mortgage is right for you?
Not sure which mortgage is right for you?
Special Property Types Resource Center
Some properties do not fit a standard mortgage because of what they are rather than who is buying them. Construction mortgages, land, mobile homes and commercial properties all sit outside normal bank lending, and each one is funded differently. Start here to see how approval works, compare the mortgage options available in BC, and read everything we have published on the topic.
Understanding Special Property Types
A special property type is one where the security itself changes the financing. Banks lend against a finished house on owned land because the value is known and the asset sells easily. Bare land has no building, a home under construction has nothing finished to appraise, a mobile home on a leased pad is not registered like a house, and a commercial building is valued on the income it produces rather than comparable sales.
All four may sit with private lenders rather than a branch. A mortgage for land is the clearest example: private lenders in BC generally require 35% to 50% down depending on whether the property is raw land, bare land, vacant land, undeveloped land, rural land or a serviced lot ready to build on. Construction mortgages work the same way from the other direction. The lender is financing a project rather than a house, and releases money as the build progresses instead of in a single lump sum.
Private lenders assess the asset and the exit, not the paperwork.
The draw process follows a similar structure with most lenders. The first draw covers land only, typically 50% to 65% of the land value. Lock up follows at 35% to 40% complete with framing, doors and windows in, then 65% with plumbing and electrical roughed-in, 85% with drywall, and the final draw at 100%. Interest accrues in most cases only on funds advanced, so interest-only payments during the build are common, with principal and interest payments starting on completion. Cost overruns come out of your own cash, so a realistic budget matters here more than anywhere.
A mortgage for land funds the property before building begins, and many borrowers move to a construction mortgage once permits are in place. Construction mortgages cover the build, whether you use a qualified builder or act as your own general contractor. A mortgage for commercial property covers office buildings, apartment buildings, shopping centres, mixed-use properties, fully tenanted industrial sites, condo inventory, and lot inventory.
Investment property mortgages fund rentals, multi-unit buildings and condos, with Vancouver, Surrey and Victoria qualifying for higher loan-to-value ratios than smaller markets. Mobile homes are their own category, with tighter rules on age and amortization.
Explore Your Options
Four mortgage products for properties that fall outside standard bank lending.
Secure financing for raw land or vacant lots in BC. Private lenders evaluate the property's equity and potential rather than relying strictly on standard bank criteria.
Get approved for mobile and modular homes, including those on leased land or pad rentals. We provide flexible financing tailored to non-traditional residential properties.
Grow your real estate portfolio with private lending options. Leverage existing equity to fund rental properties without being restricted by traditional bank debt-service ratios.
Secure capital for custom builds, renovations, or commercial real estate. Private lenders offer flexible terms and draw schedules based on the project's overall potential.
Get a free, no-obligation assessment from Jeff Di Lorenzo and the Your Equity Mortgage team. We work with builders, land buyers, investors and mobile home owners across BC.
Property Financing Guides
Guides and how-tos on construction mortgages, investment property and specialty financing in BC. More in the blog.
In stages. Construction mortgages advance funds through draws tied to build progress rather than providing the full amount at closing: land, lock up, plumbing and electrical, drywall, then a final draw at completion. Interest accrues only on money advanced.
More than on a house. A mortgage for land through private lenders in BC generally needs 35% to 50% down, depending on whether it is raw, bare, vacant, undeveloped or rural land, or a serviced lot. Existing equity elsewhere can sometimes cover the purchase through a home equity loan.
Mortgage financing for mobile homes requires a maximum effective age of 20 years and amortization of up to 25 years. Mobiles can sit on owned land or lease lots in parks, but those on leased land must be deregistered and the park owner must accept a non-disturbance or tri-party agreement. Financing is at the posted rate.
Yes. A mortgage for commercial property is approved based on equity at up to 65% to 75% of value, covering apartment buildings, offices, shopping centres, mixed use, tenanted industrial sites, and condo or lot inventory.
Get a free, no-obligation assessment. Jeff Di Lorenzo can walk you through the right financing for your property or project. Offices in Vancouver and Penticton serve clients across BC, seven days a week.
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