Borrowers use our construction program to cover land development and building construction costs. Funds can be disbursed on each stage completed, according to a prearranged schedule or when certain milestones are met.
CMHC-insured and conventional construction financing is available for retirement residences as well as purpose-built multi-family properties, mixed-use properties, and student housing.
An exit strategy is one of the key considerations for funding. Conventional construction loans are repaid from the proceeds of standard financing or the sale of the asset. For CMHC construction loans, there is an automatic conversion option to term financing.
Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site and market feasibility (especially for CMHC financing).
Speak to one of our empowered advisors to assess options and determine the best course of action for finding and securing a smart-risk mortgage.