Call or write. The land, what you want to build and what it's for, the expected cost, your timeline. You don't need any documents yet.
Construction and land loans aren't paid out all at once.
The lender pays as the work progresses, after the costs are checked. For a CMHC-insured rental building, a quantity surveyor reviews the costs and CMHC approves the first and last advances. We arrange financing for land and construction projects, in Québec and Ontario.
Mortgage broker since 2020 · AMF licence 237729 · MA Mortgage Architects inc.
When to call us
- You found a piece of land and want to know what it will take to build.
- Your plans are ready and the permit is on its way.
- Construction is starting and the loan has to be in place to pay the contractors.
- The building is finished and the construction loan must be replaced by a long-term loan.
- You need bridge financing between two stages.
Let's have a discovery call.
We look at the project, even if permits or plans aren't ready. We tell you what's missing.
You gather the documents on the list.
We build the file and take it to lenders whose criteria fit the project.
We follow the application through the advances, up to the long-term loan.
What the lender requires.
CMHC-insured loan (rental building, 5+ units). Advances go up to the lesser of 85% of cost or the value CMHC sets. A quantity surveyor reviews the costs. The work is done under a fixed-price contract or construction management. CMHC approves the first and last advances. A 100% guarantee is required until rents have been stable for 12 months. It can then drop to 40%.
CMHC Apartment Construction Loan Program. Low-cost loans to build at least 5 rental units, from $1M. Up to 100% of the residential cost, amortization up to 50 years. Advances are monthly; interest during construction is paid out of the loan. The rate is fixed at the first advance. It requires an affordability commitment: at least 20% of units rented at or below 30% of median family income, for at least 10 years, or rents set under a government affordable-housing program.
The market. According to OSFI, high-rise condo construction is under strain, especially in Toronto and Vancouver. Lenders look closely at the budget and the schedule.
| Tier | Share of cost financed | Amortization |
|---|---|---|
| 3 (0+ points) | up to 90% | 45 years |
| 2 (47+ points) | up to 95% | 50 years |
| 1 (65+ points) | up to 100% | 50 years |
What's needed.
Detailed construction budget, plans, permits, schedule, land cost and income projection.
Construction loan questions.
Do I need every permit before calling you?
No. We can talk about the project before the file is complete. Documents are gathered before it goes to a lender.
How is the money paid out?
In stages, as the work progresses. For an insured loan, CMHC approves the first and last advances; under the Apartment Construction Loan Program, advances are monthly.
How much equity do I need to build a rental building?
With an insured loan, the loan goes up to the lesser of 85% of cost or the value CMHC sets. Under the Apartment Construction Loan Program, it covers 90% to 100% of cost depending on the tier.
Should I send my plans through the form?
No. Start with your contact details and a short description of the project.
Related financing
Let's talk about your project.
Where it is, how many units, and what you want to do: buy, refinance or build. We call or email you back. You can also call us yourself, any day from 8 a.m. to 10 p.m.