What we arrange
A construction mortgage pays for a build in stages, called draws, against a budget the lender has approved. Lendrite arranges that mortgage with a range of banks, credit unions and alternative lenders across BC, then stays on through every draw until the home is finished and the loan converts or is paid out.
The builds we arrange financing for:
- A custom home you will live in, on a lot you own or are buying.
- A house built to sell, from a first spec home, built before a buyer is found, to several a year.
- A duplex with garden suites under BC's small-scale multi-unit rules.
- A fourplex or small multi-family building, built or bought.
- Land, servicing and development loans for projects beyond one lot.
The broker handling your application is your contact through to the final draw. Book a 20-minute call →
How a construction loan works
Five parts, in the order the lender sees them.
- 1
A budget on the lender's template
Every lender has its own budget form: the land, permits and design, each stage of the build, a contingency line and the interest reserve. We put your builder's numbers on that form so nothing is missing and nothing is counted twice.
- 2
Approval against the finished value
An appraiser values the home as it will be when complete. The lender approves a loan that is a share of the total cost, capped by that finished value. The rest is your equity, often the lot itself.
- 3
Draws as each stage is finished
The loan is not advanced all at once. When a stage is done, an inspector confirms it, and the lender releases the money for that stage, less a holdback the law requires, kept until the window for trades to register a lien has passed.
- 4
Interest paid from the reserve
During the build you owe interest only on what has been advanced. The lender can set aside part of the loan, called the interest reserve, to pay it, so the build does not depend on your monthly cash.
- 5
Completion and conversion
With the occupancy permit in hand and the final draw released, the loan converts, or the sale of the home pays it out. Converting to a regular mortgage at completion is mapped out with you at the start, and we check in again about four months before the build completes.
What the lender needs to see
From you, and from whoever is building.
- The budget, on the lender's template, with the quotes behind each line.
- The builder's contract, fixed price wherever possible, or the project management agreement.
- The plans, and where the building permit stands.
- The builder's résumé: licence, warranty enrolment and recent completed projects.
- Your own résumé when you are building to sell or building for a business.
- The corporate records when a company owns the land.
- The usual income, ID and down payment documents. The document checklist lists them.
Costs are gone through with you upfront, before you commit to anything. There is no credit check at the enquiry stage.
Pick the page that matches your build
Each one covers what lenders look for, what to bring and what it costs.
Custom home build
Your own home on your own lot. Owner-builder or licensed builder, draws and inspections, converting at completion.
Custom home build →Building to sell
Loan-to-cost in plain words, interest reserve and fees, the builder package, and an exit by sale or hold.
Building to sell →Duplex and garden suites
What BC's small-scale multi-unit rules allow, which lenders finance a duplex with suites, GST, and a sample budget structure.
Duplex and garden suites →Multi-unit and fourplex
Built or bought, partners and companies, strata appraisals, and the lender's questions answered first.
Multi-unit and fourplex →Land and development
Land loans, the budget and the projected numbers, environmental questionnaires, and how the loan is repaid in stages.
Land and development →How it works
The same three steps for every mortgage: a short call, documents then the application, approval to funding.
How it works →