How To Get Construction Financing

We handle 1st & 2nd Residential, Commercial, Land, Construction & Self Employed Mortgages. Credit Issues OK. Private Money. Ask about Investing in Mortgages 

If you need a construction mortgage, here are some of the things our lenders consider to be most important:

1)     Do you have the needed approvals? Is your project pie in the sky, or is it real? You cannot build and we cannot get you construction financing if the land is not appropriately zoned and you don’t have the needed approvals from the city.

2)     What is your experience, have you ever done this before? This is important. If you don’t have any experience, you should either have a strong partner and/or lots of equity behind you.

3)      Your own cash in. It’s possible to get financing for up to 80% of the construction costs (hard and soft costs), you need to be able to finance the balance from your own resources.

4)     What are hard and soft costs? Hard costs are construction costs. Soft costs are for permits, legal fees, applications to the city, architectural drawings. Financiers will want to see your detailed budget.

5)     Location of the property – this is always important, but it’s especially important where construction financing is concerned. If the lender had to take back the property due to non payment, they need to know they can liquidate/sell it quickly. This is especially important in construction financing because there is a smaller pool of potential buyers for a project that is only partially complete.

Whatever your mortgage needs, call me today. I look forward to hearing from you!


David Grossman MBA

Loan Central Canada, Managing Partner

Real Mortgage Associates, Lic. # 10464

Tel. 416 876 2031

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