Lenders release funds in stages. That means your capital plan has to line up with your construction timeline.
Using retained earnings or business cash flow
Building on land held in a corporation
Holding multiple properties or mortgages
Fluctuating income and high deductions
Credit juggling or stacking across projects
Bridge your equity. Access staged financing. Align draw timing with cash flow. Use corporate or personal ownership—strategically.
Map your construction timeline + cash flow
Analyze equity sources (personal, HELOC, business)
Match lender product to build structure
Plan for exit or conversion to term financing
Garden suite or laneway house behind your main home
Custom home for your family—built with business cash
Build-to-rent or secondary dwelling added to generate income
Personal-use builds with complex income behind the scenes
Accordion Content
You can – but if you’re planning to build in your operating corporation that might put you in a difficult legal position.
Builders or trades people could come after your business income or assets.
It could make financing more complicated or expensive.
You should plan the structure out with your accountant, a lawyer, and your mortgage consultant. I am always ready to chat with your accountant/lawyer or provide one if you need it!
Many lenders can also do land financing or a land draw which allows you to purchase the land.
In some cases you may have a more complex structure such a a joint venture partnership. Some lenders have custom mortgage programs that can allow for these.
This depends on the project (construction cost, if you own the land outright or have a mortgage on it already, if there’s a house on the property, and other factors).
Common rule of thumb is the best pricing lenders aim to see approximately 50% of the land value and construction cost in capital. Other lenders are more flexible if needed.
Yes – infact, many construction lenders will use make sense lending instead of rigid policies.
There are typically 3 routes builders take:
First, if you plan to sell, then lenders may want to see some of the units pre-sold. You would then complete the build and sell as planned.
Second, if you plan to living in the home after completion, many lenders will allow you to graduate into standard mortgage financing. If not, then you can refinance into a standard mortgage.
Third, if you plan to rent the property out after completion, you can often graduate into an investment property mortgage. Again, if you can’t then you can refinance into one.
This is a very important part of the planning process so should be thought about at the start.
No friction. No bank confusion. Just a clear strategy from blueprint to funding.
