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Construction Finance

Funds for building your new home.

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Appreciation Creates Wealth

Historically, real estate values increase over time. This means your home may be worth significantly more in 10, 20, or 30 years — creating passive wealth simply by owning it.

BuildEquityOver Time Witheverymortgage

payment, you're not just paying rent to a landlord — you're building ownership in a valuable asset. Over time, this equity grows, becoming a powerfulfinancial tool.

LeverageEquity for Other Goals

  • Refinance to lower interest rates
  • Use equity for renovations, investments, or education
  • Tap into it later through a reverse mortgage or downsizing in retirement

Supplement Retirement Income

When you retire, your mortgage may be paid off reducing your living expenses. You could also rent part of your home or sell and downsize, turning that equity into retirement income.

Construction Financing Made Simple

Build Your Dream Home with Confidence

Building a home is exciting, and we’re here to help make the financing part easy to understand. Whether it’s your forever home, a rental property, or a cozy cottage, we’ll guide you through it all.
With years of experience in both building and financing, Suganthan will walk you through every step, so you always know what’s next and feel confident about your choices. Let’s build something great together!

What is Construction Financing?

Construction financing is a short-term loan designed to fund the building of a home or property. Unlike a traditional mortgage, construction financing provides funds in stages—also known as draws—based on the progress of the build.

How It Works

Simple, transparent, no-stress process:

Phase 1: Planning & Preparation

  • Land acquisition & zoning reviews
  • Custom design with architects & engineers
  • Permit application & approvals
  • Detailed budgeting and financing (construction mortgage support)
  • Builder contract & project scheduling

Phase 2: Construction From Ground to Roof

  • Site clearing, excavation & foundation
  • Framing, roofing, windows & doors
  • Electrical, plumbing & HVAC rough-ins
  • Drywall, insulation & structural inspections
  • Interior & exterior finishes

Phase 3: Final Finishes & Possession

  • Final inspections and occupancy certificate
  • Appliance & fixture installations
  • Landscaping (rough or final grade)
  • Final walkthrough & key handover

Key Considerations for Construction Financing

Once your vision and plans are in place, here are the most important aspects to consider when financing your project:

Construction loans can cover:

  • Up to 100% of your building costs, and/li>
  • 65% to 75% of your completed home’s appraised value.

Understanding your loan limits early ensures you won’t face unexpected financing gaps later
in your project.

Financing both land and construction?
Most lenders will cover up to 65% of the land value when combined with a construction
loan.

Tip: Securing pre-approval upfront helps you confidently budget for both land purchase and
construction costs, reducing your financial risk and streamlining your project.

Construction loans typically release funds in stages, called draws, based on project milestones.
  • Banks usually allow up to 4 draws.
  • Private lenders may allow more flexibility.
We recommend keeping your draws to 6–8 maximum, since each draw often comes with additional inspection and administration fees. Proper planning can help keep these borrowing costs low.
Construction financing typically offers two main payment options:
  • Monthly payments — standard principal & interest or interest-only payments.
  • Interest-reserved payments — interest costs are built into the loan and paid using borrowed funds, deferring interest payments until the next draw or the end of the term.
Each option has pros and cons. We’ll help you choose the structure that best aligns with your cash flow and financial strategy.

Most construction loans are open, meaning you can repay them at any time within the term with no penalties.
This flexibility allows you to pay off your loan early if:

  • You complete your project ahead of schedule,
  • You receive unexpected funds (ex: from a sale or investment).

Important: If your project is delayed, you may need to renew your loan term—another
reason why smart budgeting and project planning matter.

Plan Your Budget & Keep Your Goals in Sight

Every decision in the building process impacts your budget.
To stay on track:
  • Budget carefully for land, materials, labour, and unexpected costs.
  • Stay connected with your mortgage team and your contractor throughout the project.
  • Regularly review updates to avoid cost overruns and keep your project aligned with your goals.

Ready to Start Building? Let Us Help

Navigating construction financing can feel overwhelming—but with the right guidance, it becomes a clear and rewarding journey.

With deep expertise in both construction and mortgage financing, Suganthan takes the stress out of the process by:

  • Structuring the right loan solution tailored to your unique needs
  • Supporting you through every stage—from land purchase to final inspection
  • We stay with you through every stage of your project — from land purchase to completion.

Whether you’re ready to break ground this year or simply exploring your future options, we’re here to help you build with confidence.

Let’s turn your vision into reality.

Schedule a Call with Suganthan
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