Ontario mortgage help
Construction mortgages in Ontario
Construction financing is commonly advanced in stages rather than as one amount. Confirm the land position, approved budget, borrower equity, draw conditions, inspection process, interest, and completion funding before work begins.
What to do first
Prepare the land documents, plans, permits, fixed-price or trade contracts, detailed budget, construction schedule, and contingency reserve.
Ask the lender what must be completed before the first advance and what percentage of each stage must be funded from your own cash.
Obtain a written draw schedule showing inspection requirements, holdbacks, fees, interest calculations, and what happens if costs exceed the budget.
Confirm how the construction loan converts to long-term mortgage financing and which borrower and property conditions must be satisfied again at completion.
Important considerations
Approval may be required before construction startsSome insured construction programs require approval before work begins or at an early stage. Starting first may change eligibility.
The appraised value is not the cash budgetAdvances may depend on completed work and lending value. Deposits, overruns, taxes, holdbacks, and work between draws may require separate cash.
Completion risk belongs in the planDelays, contractor changes, weather, material costs, inspection issues, and an incomplete occupancy path can affect both draws and permanent financing.