Sean Rankin Mortgage Agent level 2

Construction financing

Construction Mortgages Ottawa

Top Rankin Mortgages provides construction mortgages for the Ottawa Ontario and surrounding areas

Construction financing is a type of company funding designed to help contractors, sub-contractors and those working in the construction industry. It can be utilized to finance new projects, pay suppliers speedily, buy new construction equipment and machinery and boost working capital. There are different types of construction finance available, including secured and unsecured loans and equipment leasing. Since there is more lender risk, construction mortgages usually have stricter qualifications and higher interest rates.

The cost of construction loans relies mainly on the size of your firm, the nature of your trade, and a few other aspects like your credit score and creditworthiness. Some lenders are designed to satisfy larger firms, while others support smaller businesses.

Construction finance also puts you in a better position to take on larger jobs without stressing about getting paid for outstanding accounts receivable.

The benefit of Construction Finance 

  • Funding within 24 hours of submitting uncertified applications for payment.
  • Confidential, if required.
  • Reimburse wages, bills, labor costs, or suppliers before you get paid by the main contractor.
  • Enhance cash flow and take on new jobs with confidence.

How we can help

With TopRankin Mortgages Inc, we can assist you in making your construction dream come true. Here, you will work closely with a reliable team of highly experienced employees who maintain high ethics, integrity, and transparency standards. Find out how simple it is, and apply for construction finance today. And of course, if you have any queries, feel free to reach one of our representatives at any time – we’ll be glad to help walk you through the process!

Construction Mortgage FAQs

1. What is a Construction Mortgage?

A Construction Mortgage, also known as a self-build mortgage, provides financing for the construction of a new home or a major renovation project. Unlike a traditional mortgage, the funds are released in stages as construction progresses.

2. How do Construction Mortgages work?

Construction Mortgages work by releasing funds in stages, commonly known as “draws,” as the construction progresses. This typically occurs at four stages: land purchase, roofing and framing, lock-up, and completion. An appraiser will confirm the completion of each stage before the next draw is released.

3. What are the requirements to qualify for a Construction Mortgage?

To qualify for a Construction Mortgage, lenders often require a detailed construction plan, including budget and timeline, a solid credit history, proof of sufficient income to cover the loan, and sometimes a higher down payment than traditional mortgages.

4. How much down payment is needed for a Construction Mortgage?

Typically, in Ottawa, the minimum down payment required for a Construction Mortgage is 20% of the total cost, but it can vary depending on the lender and the total price of the construction project.

5. Can I use the land I already own as a down payment for a Construction Mortgage?

Yes, if you already own the land on which you plan to build, its value can often be used as part or all of your down payment. The land value will need to be assessed to determine its worth.

6. Can I get a Construction Mortgage if I am a self-builder?

Yes, but it can be more challenging as many lenders see self-builds as a higher risk. Therefore, requirements are often more stringent, including having a larger down payment and more comprehensive plans and estimates.

7. Can I convert my Construction Mortgage into a regular mortgage?

Yes, typically, once the construction is completed and the home is ready to live in, you can convert the Construction Mortgage into a conventional mortgage. This process is known as the “end loan” or “take-out loan”.

8. How does the approval process for a Construction Mortgage work?

The approval process for a Construction Mortgage involves a review of your creditworthiness, your construction plans, and cost estimates. An appraiser may also assess the expected market value of the finished home. If approved, the loan will be disbursed in stages as construction progresses.


TopRankinMortgages Inc.

Serving all over Ontario including Greater Ottawa Area from Orleans to Kanata.