Start With the Full Project
We review the property or land, construction plans, estimated costs, available equity and your financial profile together. Construction lenders need to understand both the borrower and the project.
CONSTRUCTION FINANCING
Financing built around the stages of your project.
Construction financing works differently from a standard home purchase. We help you plan the land, equity, budget, draw schedule and long-term financing so the mortgage structure fits the project from the beginning.
Plan Your Equity & Cash Flow
Funds are generally advanced in stages rather than all at once. Understanding when your own funds are required—and what costs arise between draws—is an important part of planning.
Structure the Draws
Construction financing commonly releases funds as work progresses. Draw timing, inspections, holdbacks and lender requirements can affect how cash moves through the project.
Plan for Completion
The financing strategy should consider what happens after construction is complete, including conversion or take-out financing and the mortgage structure you want to carry long term.
CONSTRUCTION FINANCING JOURNEY
Understand the financing before construction begins.
01Land / Equity
02Plans & Budget
03Approval
04Initial Equity
05Draws
06Completion
PROJECT TYPES
Different projects need different financing structures.
Custom Home
Financing for an owner building a new primary or secondary residence, with funding coordinated around construction progress.
Land + Construction
Where land acquisition and the subsequent build need to be considered together as part of the overall financing strategy.
Major Renovation
Large-scale improvements may require a different approach than a conventional refinance, particularly when value is being created through the work.
Builder / Developer
Project financing can involve additional analysis of experience, costs, equity, timelines, exit strategy and the proposed development.
WHAT LENDERS REVIEW
Prepare the project, not just the mortgage application.
Requirements vary by lender and project, but construction financing generally involves more project documentation than a standard residential mortgage.
Review your project with us →Land & PropertyPurchase details, existing ownership, current financing and available land equity.
Plans & BudgetConstruction plans, specifications, detailed budget and expected project timeline.
Builder InformationBuilder or contractor details, contracts and experience where required by the lender.
Borrower FinancialsIncome, assets, liabilities, down payment/equity and supporting financial documentation.
Appraisal & InspectionsLenders may require an as-complete appraisal and progress inspections before subsequent draws.
Contingency & CompletionAdditional funds may be needed for cost overruns, holdbacks and the transition to long-term financing.
WHY PLANNING MATTERS
Plan beyond the approval.
Equity Requirements
The amount and timing of borrower equity can vary by lender, project type, land value and overall risk profile.
Draw Timing
Construction draws are generally tied to completed work and lender requirements, so cash-flow planning between stages matters.
Interest During Construction
Interest and carrying costs during the build should be incorporated into the project budget rather than treated as an afterthought.
Cost Overruns
A realistic contingency can help protect the project when material, labour or other construction costs change.
PROJECT REVIEW
Before you commit to the build, understand the financing.
Construction financing can vary significantly by lender and project. Orbit can review the land, budget, equity, borrower profile and intended build to help identify financing structures that may fit the project.
Start with a consultation before committing to a financing structure.
Build the financing plan alongside the project plan.
Tell us what you're planning to build and where you are in the process.