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.
Depending on the composition of gross floor space and the sources of rental revenue, CMHC-insured and conventional construction financing is available for mixed-use properties.
An exit strategy for the construction loan is one of the key considerations for funding. Construction loans are repaid from standard financing or the sale of the asset.
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 construction mortgage.