Construction Mortgage


Award winning customer service to each and every single client!

Or talk to a mortgage broker now:

Construction Mortgage in Toronto

How To Get Mortgage For Home Construction

Constructing your own home is exciting and one that many Toronto residents are undertaking. Why live in a home designed and built for another family with a different lifestyle when you can customize a home to your lifestyle?

So you got yourself into home construction, what are your options in terms of a mortgage? At Turkin Mortgage we offer a number of different options for a construction mortgage. Whether you are a builder yourself, employing a contractor for building, or are a buyer of a new home there are unique solutions available for you. Building a custom home is a popular trend in Canada at the moment because it allows to include all the features and designs that reflect your personal tastes. Such projects require sufficient financing and preparation, however.

Documents That You Need To Apply For Construction Mortgage

Construction financing, when done properly, is a quick and efficient process. As a builder there are a number of documents that you need to obtain and provide. Examples include: building plans, specifications, proof of down payment, fire certificate and more. Our specialists will make sure that you are not missing anything that is needed and will save you many on the processes.

Call us: +1 866 921 8890

Questions? We’re here to help!


$1000 Cash Back or Free iPad

When You Close With Us!

To learn more

contact us

You have questions. We are here to help!


Qualifying For A Construction Mortgage In Toronto

Qualifying for construction mortgage sometimes called a self-build mortgage is very different to qualifying for finance on an existing property. Mortgage providers will require a lot more information from you and you will have to make a bigger down payment on the property than on an existing home. This is typically anything from 25% to 30%.

When planning to construct your own home, you’ll have to work with the contractor to produce drawings, timelines and cost estimates before you approach the financial institution to seek funds.

Most lenders will want assurances that the construction will be completed in a certain timeframe. They may want proof that the builder is certified and has a portfolio of previously well-built homes.

Toronto financial institutions deem the mortgage risk of construction to be greater than that on an existing home and for this reason, they will finance the construction as it reaches various stages and will not part with the full funding until the construction is complete.

The institution will require

  • Proof of income
  • Credit history
  • Building plans and estimates

Types Of Construction Mortgage

In Canada, there are two types of construction mortgage available, a process-draw mortgage and a completion mortgage. If you have a completion mortgage transfer of the money will only take place upon completion of the construction or when you take occupation.
Because the funds are transferred on completion you can usually make changes to the mortgage up to thirty days before you take possession. This gives you the flexibility to ask for additional amounts if there are overruns.

On the other hand, during the completion time, your life’s circumstances could change and you may not qualify for the mortgage that you did when you applied.
The progress draw is typically paid out as the construction progresses, with payments made at 35%, 65% and 100% completion. For the lender, the progress draw mortgage is much riskier. The incomplete building is collateral on the loan. In the event of default, the lender could have an incomplete home that may not cover the full amount of the loan.

Types Of Construction

There are three types of construction.

  • Self-built
  • Contractor built
  • Purchase of a newly constructed home – a great option for those who want a new home but don’t want to go through planning and construction

The first two will qualify for progress draws or completion mortgage, the last will require a completion mortgage.
Because of its complexity, it is best to consult a mortgage broker before applying for a construction mortgage. The expert consultants at Turkin Mortgage in Toronto can help you every step of the way.

Variety of Rates for Construction Mortgages in Toronto


We can help you finance the amount of money needed to purchase a new property, and/or cover construction costs to build the house of your dreams.


Contact us today to arrange an in depth private consultation. We will support you throughout the whole process and inform of you of all the details that you need to know. With Turkin Mortgage you can build your dream home and have a peace of mind with regards to financing and mortgage.

Google Reviews

Turkin Mortgage
powered by
Henry Wright

Was looking for a mortgage broker in Toronto. Heard about Leon and his team from a co worker and decided to give them a call. after some time on the phone talking about mortgages and what would work best for me I was VERY impressed. They were polite and most importantly they knew what they were talking about. We then scheduled an appointment and I got my mortgage with a great rate. Definitely recommend.

Gina Carroll

Got tired of sow service and mediocre rates from my bank, so I started looking for a mortgage broker. Had some family friends recommended Leon and his team, so decided to check them out. Was very impressed with Leon, he guided me through step by step, recommended a mortgage and I ended up switching to him. My rate is better and he always answers call and emails right away.

Wilton Marble

A little while back my wife and I finally decided to stop renting and get a place of our own. After some searching we found a condo we both liked and that was in our price range. The next step was a mortgage, but honestly, neither of us knew too much of what we were getting into. We found Leon and his team after a quick search on google and have had a wonderful experience. Leon and his team of mortgage brokers are VERY knowledgable, polite, work fast and just all around very professional. They answered all our questions and we got a great rate.

Afton Jaskolski

Getting a private mortgage was not easy to be honest, but at least with Mr. Leon it was doable. Thank you for your help!

Wendy Langdon

Going through with this company was my best decision. These Burlington mortgage brokers are real professionals. They helped me to save thousands of dollars, I'm not sure I'd find such a good offer myself.

Contact Us