Construction & Renovation

Construction and renovation financing has more moving parts than any other mortgage product—draws, hold-backs, progress inspections, and lender-builder coordination. Done well, you barely notice. Done poorly, your project stalls. We do this often.

Three product structures

Purchase-plus-improvements

Buy a property at price X, fund renovations of Y, get one mortgage for X+Y based on the post-renovation appraised value.

Draw mortgage (new build)

Funds released in stages as construction progresses—typically at foundation, framing, lock-up, and completion.

Renovation refinance

Pull equity from your existing home to fund renovations, with the option to convert to a regular mortgage when the work is done.

Working with your contractor

We coordinate directly with your builder or general contractor on draw schedules and inspection requirements so you're not stuck in the middle. Most projects need 4–6 draws over the build cycle.

What lenders look for

Detailed scope of work, signed fixed-price contractor agreement, builder credentials (Tarion warranty for new builds), realistic budget with 10–15% contingency, and a post-construction appraisal that supports the value-add.

Frequently asked

How much can I borrow for renovations?

On a purchase-plus-improvements, up to 95% of the post-improvement value with default insurance. On a refinance, up to 80% of current appraised value.

When are funds released?

Stage-based draws inspected by an appraiser or progress inspector. Typically 15% at foundation, 40% at lock-up, 65% at drywall, 100% at completion (varies by lender).

Can I use my own contractor or do it myself?

Yes to a licensed contractor. Owner-builder situations are harder—some lenders allow it with proof of construction experience, but most prefer a registered builder.