Construction Mortgage Toronto

As the term suggests, a construction mortgage is a loan given to facilitate the construction of a building.
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Construction Mortgage Toronto

As the term suggests, a construction mortgage is a loan given to facilitate the construction of a building. Construction mortgages are given to:
  • Builders who own their own lots
  • Landowners who want to build a property for sale or for personal use
  • Builders who are building for end-users
  • Investors using builders to build on your land
  • Builders who own their own lots
  • Landowners who want to build a property for sale or for personal use
  • Builders who are building for end-users
  • Investors using builders to build on your land
Mortgage Offers
pick the one thats right for you.
  • get
    $ 2,000
    on purchase over
    $500, 000
  • Receive
    $ 1,400
    when you transfer
    your mortgage of over $500,000
  • complimentary
    12 months
    Home service plan
    fint out more


If the mortgage is approved, you will draw money for the different stages of the construction project. This tactic is used by the lender to ensure that the money is going where it should. The first draw is optional – you get 15% to complete excavation and the building of the foundation. The second draw is 25% and is meant to do everything up to the roofing and weather protection. The third draw of 25% is meant to complete drywall/plaster, exterior wall cladding, furnace installation, plumbing, and to start wiring. The fourth draw of 20% completes kitchen cupboards installations, doors, and the bathroom. The final 15% completes the seasonal and exterior work. Before each draw, an inspector has to visit the upcoming building to ensure NHW (New Home Warranty) policies are being adhered to before further funds can be drawn. The borrower has to meet the cost of the inspections. At Approved Mortgage Broker, we will guide you on the applicable rules to ensure you know what you are getting into. As an example, it is important to know that once the mortgage is approved and signed, you don’t have the luxury of changing the mortgage amount to accommodate any changes or upgrades made to the property. We will help hunt for the lowest interest rates in the market. We will also help you get the terms that best suit you, keeping in mind that interest can be deducted from each advance or paid monthly.


Featured Rates
Fixed
  • Lender
  • Rate
  • Term
  • Toronto-Dominion
    3.04%
    5 years
  • Scotiabank
    3.04%
    2 years
  • MCAP
    2.99%
    5 years
  • CMLS
    2.84%
    3 years
  • RFA
    2.64%
    5 years
  • First National Bank
    2.74%
    5 years
  • DUCA
    3.84%
    1 year
  • B2B
    3.19%
    2 years
  • Meridian
    2.79%
    5 years
  • RMG Mortgage
    2.69%
    5 years
Variable
  • Lender
  • Rate
  • Manulife Bank
    2.74%
    5 years
  • Home Trust
    3.00%
    5 years
Other
  • Type
  • Rate
  • Secured line of credit
    4.45%
  • Private mortgages
    5.99%
Questions?
We Are Here to Help

We will assist you to come up with the required documents and to meet other eligibility criteria. Regardless of whether the project is commercial or residential, eligibility criteria include:
  • ILR (Independent Legal Representation) or ILA (Independent Legal Advice) (based on the lender’s requirements)
  • Construction approach (who will be doing the building?)
  • General application information such as if you are a corporate or individual borrower, your personal net worth, and the business credit profiles
  • Completed and approved plans, drawings, and permits
  • Your construction budget
  • Projected building timelines
  • ILR (Independent Legal Representation) or ILA (Independent Legal Advice) (based on the lender’s requirements)
  • Construction approach (who will be doing the building?)
  • General application information such as if you are a corporate or individual borrower, your personal net worth, and the business credit profiles
  • Completed and approved plans, drawings, and permits
  • Your construction budget
  • Projected building timelines
Purchase or Refinance
for a free consultation
What our CLients Say
Approved
  • Avatar gilles veilleux ★★★★★
    Masoud and his team are truly focused and result driven. I did my refinancing with them, it went smooth from start to finish.
  • Avatar Roosevelt Freeman ★★★★★
    I used Nick to renew my mortgage. He found me a better deal than my bank could offer and I intend to use him again the next time I need to renew. Nick did all the work, he made it easy and simple for me. He really knows his stuff!
  • Avatar Linda Howard ★★★★★
    After some unfortunate interactions with my previous mortgage broker trying to close the deal I was recommended Approved by a friend of a friend. I didn't have my hopes high to be completely honest, however decided to give it a go and called Masoud. He was quite reassuring over the phone, and after our meeting I finally felt like I'm in the right hands. Long story short, we closed the deal and most importantly I got a much better rate than expected. I already recommended Approved to my colleague, and I'm sure there'll be more referrals from me when the time comes
  • Avatar Juan Pearson ★★★★★
    Nick gave me great advice and fair rates to process my mortgage. Marianela, his assistant, was quick getting back to me and explained any questions about documents. Would highly recommend these guys.
Contact Us
Certified Mortgage Brokers
Across Toronto
…by providing award winning customer service to each and every single client.