A Preferred Construction Mortgage Lender.

Construction Mortgages.

Custom Homes, Renovation Projects & Development.

Ontario, British Columbia & Nova Scotia.

"Our first-call for construction financing"


Vancouver Builder

Construction Loan, Mortgage Broker and Private Lender
What Is A Construction Mortgage Loan?

What is a Construction Mortgage Loan?

How Do Construction Loans Work?

A construction loan is a mortgage facility that provides homeowners, custom home builders and real estate developers with capital to build or develop real estate, from custom homes to subdivisions. Depending on the nature and complexity of the project, funds are typically advanced in stages, thus providing the borrower with the required capital to make gradual progression without the lender over-advancing funds in relation to the property value at the time of each respective advance. Construction mortgages are funded by traditional, alternative and private mortgage lenders. Construction mortgage lenders have specific underwriting guidelines and are selective with the types of projects that they will finance as well as whom they provide construction financing. There is a limited number of construction mortgage lenders given the associated risk. As a result, the traditional mortgage lenders that will provide construction financing are quite rigid with numerous policies that can be restrictive. Therefore, depending on our clients project requirements, private construction mortgage financing might provide a greater flexibility and reduce a lot of red-tape. Construction mortgages are typically short-term products that end up converting, on completion of the build, to a traditional mortgage, known as a ‘take-out mortgage’, that is unless, our client intends on selling the property. DV Capital facilitates construction and development financing across Ontario, British Columbia & Nova Scotia for homeowners, builders & developers.

Custom home Construction mortgages.

Infill Custom Home construction financing.

DV Capital liaises with homeowners, real estate investors, general contractors and custom home builders that require renovation project financing and custom home construction mortgage financing. In most cases, homeowners approach us once they’ve spoken with a custom home builder and provide us with information and documentation outlining an approximate cost to build and the characteristics of the house including the design, dimensions and square feet. With this information, we can quickly determine an approximate value of the custom home upon completion. Depending on the land value, the balances of existing mortgages, the cost to build and the amount of money that the client can inject into the build, DV Capital can quickly ascertain if and how they can structure a custom home construction mortgage. In other cases, we’re approached by clients that either own an existing property they wish to demolish and build a custom home or wish to purchase either a vacant lot or existing structures that’ll be demolished. DV Capital provides custom home construction mortgage loans in Ontario, British Columbia & Nova Scotia. 

Custom Home Construction Mortgages
Custom Home Construction Mortgage Example

Custom Home Mortgage Example.

Example: Toronto Construction Mortgage Lender.

Property Location: Toronto, Ontario (Leaside)
As-Is Value: $1,200,000
When-Complete Value: $2,500,000 (3500 Square Feet)
Existing 1st Mortgage: $400,000
Cost-to-Build: $1,300,000
Total Mortgage: (1st of $1,750,000 or 2nd of $1,350,000)

Note: There’s an existing 1st mortgage of $400,000, depending on numerous factors, the client might prefer to keep the existing 1st mortgage in priority and secure a construction mortgage in second position, or, discharge the existing first mortgage and rewrite a new first mortgage. In both cases, the total construction loan amount of $1,350,000, which includes a buffer for closing costs and an interest reserve, does not exceed 70% of the when-complete value ($1.75M / $2.5M = 70% Loan to Value). In this case, the total mortgage loan provides the client with 100% Loan to Cost financing.

DV Capital facilitates custom home construction financing across urban, suburban & select rural locations in Ontario, British Columbia and Nova Scotia.

Construction Loans for Spec Homes.

Private Lenders for Spec Home Construction.

A spec home construction mortgage is a financing product designed for custom home builders that provides them with construction financing to build of a custom home without being under contract with a buyer, unlike a typical custom home construction project where a custom home builder is under contract with a buyer before the construction process commences. Naturally, there is an additional layer of risk as the custom home builder is building a property in hopes of securing a buyer, ideally before the completion of the custom home or at least as quickly as possible thereafter. There is an additional layer of speculation given the subjective nature of design and finishings in the home that might not appeal to an already, naturally, smaller custom home buyer audience. DV Capital facilitates custom home construction for spec-builds across Ontario, British Columbia and Nova Scotia, as well as inventory loans if liquidity is required before the sale & closing of the custom home(s). 

Construction Loans for Spec Home Builds
Rural Construction Mortgage Loan
Rural Construction Mortgage Loan.

Rural Construction Lenders.

DV Capital provides mortgage construction loans to homeowners and custom home builders in locations outside of major urban centres, locations sometimes under-serviced by construction mortgage lenders, an already small audience to begin with. If you are looking to purchase land, or already own land that is unserviced or serviced, with an existing dwelling, we can help you to explore rural construction mortgage loan options. Whether you intend on occupying the property as a principal residence or a second home, such as a cottage or summer home, or intend on selling the property upon completion, contact DV Capital to discuss rural construction mortgage loan options for your project in Ontario, British Columbia or Nova Scotia. Note that we also have financing options 

Custom Home Construction Mortgages.

DV Capital is often approached by homeowner, real estate investor or custom home builders seeking construction financing options. Given the cost of land, labour, materials, soft and hard costs, construction financing requires capital, planning and expertise. While each situation is different, homeowners typically approach us facing the following two situations. Note that loan-to-cost and loan-to-value ratio requirements vary based on project details.

Currently Owned Property: Demolish + Rebuild: In this situation, the client currently owns a property that they wish to demolish and rebuild. Accordingly, we assess the location of the property, the value of the land, the details and balances of any existing mortgages, the cost to build the new home which generally revolves around the square feet and quality of finishings, and the value of the completed property once built. Using this information, we can determine the amount of existing equity as well as the ‘loan to cost’ and the ‘loan to value’, the two main formulas used by construction mortgage lenders to determine the feasibility, risk and profit of the contemplated construction project. In some cases, we can finance up to 100% of the construction hard costs, however in other cases, our client may be required to inject their own funds into the project – this largely depends on the details of the project, primarily the equity and loan to value.

Purchase a Property: Demolish + Rebuilt or Build on Vacant Lot: In this situation, a party is interested in either purchasing an existing property with a structure that they intend on tearing-down, or purchase a vacant lot to build a property on. If they are able to purchase the property without a mortgage, naturally, there will be much more equity in the property that will help minimize a construction lenders exposure. However, if they are requiring a mortgage to help them purchase the property or lot, we can assist them with a purchase + build mortgage. This is a two-parter. The client must be able to inject sufficient funds for the purchase and towards the total construction financing costs in order to satisfy construction lenders loan to value and equity requirements. In either case, the client will then own the property and the construction financing and build will commence accordingly. 

Whether you are a homeowner or a real estate investor or developer that owns an existing property or wants to purchase a property to build, or a custom home builder wanting to build a spec-home prior to having a seller, DV Capital is pleased to assist your construction financing requirements in Ontario, British Columbia and Nova Scotia.  

Construction Loan Eligiblity:

Residential & Commercial Mortgage Loans.

  • Custom & Luxury Home Construction Mortgage
  • Multi-Family Apartment Building Mortgage
  • Mixed-Use Construction Mortgage
  • Row Town House Project Construction Mortgage
  • Low-Rise & Mid-Rise Construction Development Mortgage
  • Student Housing Construction Mortgage
  • Commercial Building Construction Mortgage
  • Industrial Building Construction Mortgage
  • Hotel & Motel Construction Mortgage
  • Places of Worship Construction Mortgage
  • Subdivision Construction Mortgage
  • Mid-Rise & High-Rise Condominium Construction
  • Purpose-Built Asset Construction Mortgage
  • Retail Plaza Construction Mortgage
Residential & Commercial Mortgage Loans

General Inquiry.

Hear it from our Clients.

Mortgage Newsletter.

We’ll keep you posted on a need-to-know basis about mortgage rates, industry insights, updates and examples of recently funded mortgages. Thank you for providing us with CASL-consent to receive electronic messages, you can easily unsubscribe anytime.


your mortgage Resource Guide.

We welcome you to browse through our blog posts that provide helpful mortgage information and all  mortgage related.

DV Capital Corporation.

FSRA License: 13186
NS License: 3000348 | 3000349

Let's Speak.