A construction loan helps borrowers manage periodic payments for contract work during the building of a real estate asset. Construction financing is available for condominiums, retail, office, industrial, retirement and purpose-built apartments. CMHC-insured construction financing is available for purpose-built apartment buildings, retirement and affordable housing. 

An exit strategy for the construction loan is one of the key considerations for funding (i.e. CMHC standard financing or individual unit sales for residential condo projects). Other critical considerations include the borrower’s experience, quality of the site and market feasibility (especially for CMHC financing).

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