Construction / self-build

Financing a brand-new home build.

Building a house means running a project on top of your mortgage. The lender releases funds in stages (foundation → framing → roof → finishing) with an inspection at each one. If you're self-building — no general contractor — the lender list narrows further. An AMF broker who knows this product saves you from getting blocked mid-build.

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Who it's for

You're buying land and building (general contractor or turnkey).
You're self-building (managing the site yourself).
You're buying off-plan in a new development (presales, semi-detached).
You're buying a manufactured / modular home installed on your lot.
You're undertaking a major addition to your current property.

What the Courteo network brokers look at

Construction is a complex file — an AMF broker who's done several saves you months of delay.

Detailed construction plan, estimated quotes, expected schedule.
Real down payment (often 20-25% of total construction + land cost).
Capacity to absorb overruns (materials, delays) — 10-15% buffer.
Choice between construction-conversion (one-close) or progress draws.
Specialized lender programs: MCAP, RBC, BMO, certain Desjardins caisses.
Mandatory inspections at key stages (at least 4 appraiser visits).

FAQ — construction

Difference between progress-draw mortgage and construction-conversion?
Progress draws advance the loan in tranches based on completion (foundation 15%, framing 40%, roof 65%, finishing 90%, end 100%). Construction-conversion (one-close) bundles construction + final mortgage into a single loan — less paperwork but less flexible.
How many appraiser inspections are scheduled?
Minimum 4 visits with most lenders (before each disbursed tranche). Cost ~$150-300 per visit, paid by the borrower. The broker tells you ahead which lenders are least demanding.
Can I self-build without a general contractor?
Yes, but the lender pool is more restricted and the down payment higher (often 25-30%). You also have to demonstrate expertise (detailed quotes, schedule, identified subcontractors). A specialized AMF broker steers you to lenders that accept self-builds.
What happens if I exceed the construction budget?
The lender doesn't automatically increase your loan. You pay the overrun out of pocket, or refinance if you have equity. A 10-15% buffer on the initial quote is standard.
Can I have a construction loan and a residential mortgage in parallel (still paying my current home)?
Yes, but your GDS/TDS ratios must absorb both loans simultaneously. Some banks offer a "bridging" program (bridge loan) while you sell your current home. The broker structures the scenario.

Ready to put together your construction file?

An AMF broker from the Courteo network who's already overseen builds saves you the classic pitfalls.

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