At DV Capital, we work with homeowners, real estate investors, and custom home builders seeking reliable and flexible custom home construction mortgage financing. Building a custom home requires more than just a vision; once you factor in land costs, labour, materials, soft and hard costs, and the significant time and energy involved, successful construction projects demand careful planning, sufficient capital, and the support of an experienced funding partner who understands the complexity of construction financing. While every client scenario is unique, construction mortgage situations generally fall into one of two categories, each requiring a tailored approach and careful consideration of both loan-to-cost and loan-to-value ratios.

Client Owns A Property: Demolish + Rebuild: In this case, we assess the property’s location, the underlying land value, the balances and details of any existing mortgages, the projected construction costs (which are usually driven by square footage and quality of finishings), and the expected value of the completed home once construction is finished. With this information, we determine the borrower’s equity position, along with the loan-to-cost and loan-to-value ratios, which are the primary benchmarks used by construction mortgage lenders to evaluate project feasibility, risk, and profitability. In many cases, DV Capital can finance up to 100 percent of the hard construction costs, although depending on the overall financial structure, clients may be required to inject additional capital to satisfy lender requirements.

Client is Purchasing a Property: Demolish + Rebuild or Build on Vacant Lot: If the client acquires the property without a mortgage, their equity position is stronger, which often results in more financing options and potentially lower interest rates. However, if a mortgage is required to help complete the purchase, DV Capital can structure a purchase plus construction mortgage, which functions as a two-part financing solution covering both the acquisition and the build. In these cases, the client is typically required to contribute sufficient funds toward both the purchase price and the construction budget in order to meet construction lenders’ loan-to-value and loan-to-cost ratio requirements.

Whether you are a homeowner planning to build your dream residence, a real estate investor or developer acquiring land to construct new real estate, or a custom home builder embarking on a spec build without a purchaser in place, DV Capital provides construction mortgage financing across Ontario, British Columbia, and Nova Scotia. Our team delivers flexible, customized lending solutions designed to match the unique financial requirements of each project, ensuring clients have access to the capital and expertise they need to bring their vision to completion.