Financing Services

Construction Financing

  Financing Available up to $600M  

At TMLENDING we are able to secure construction financing for your upcoming projects in as little as 24 hours! We offer construction mortgages from $7M to $600M. Get the foundation you need for success today!

Important note: A construction mortgage approval sets the primary foundation for your upcoming projects. There are a number of factors that determine eligibility as well as the nature of your loan. No matter how grand the project or your vision, a construction mortgage approval is your initial step.

Securing the financing required to purchase land is slightly more complex than applying for a mortgage, or alternative loans. Firstly, there’s no home or building to act as collateral for your loan. This increases the risk of investment for lenders compared to already established properties. Land can be divided into two distinct categories, depending on your intended purpose.

What is a construction Loan?

Whether you’re planning to rebuild a single-family dwelling or a larger subdivision, financing options are available to meet all of your project needs. We take the time to review your specific needs before recommending the best financing solution.

Your best-suited option depends on certain criteria such as the cost of your project, whether you need all the money upfront, or how much time you need to repay your loan. There is a wide range of loans that differ specifically to suit your project at hand.

  1. A small and personalized project can range anywhere from $500k to $7M. Such loans refer largely to major renovations (wall-to-wall renovations) or building a single-family home.
  2. Larger projects consist of building subdivisions or neighborhoods and can vary from $7M to $600M.

How do construction mortgages work?

Construction financing is similar to a second mortgage where the value of the property is of future value. This type of loan is usually interest-only payments and is granted at different stages during the completion of your various construction projects.

The payouts are referred to as “draws” on a progression advance basis as you move along in various levels of completing your project(s) construction.
These interest only loans are short-term, which last 1 to 3 years with a typical holdback of 10-15% per draw as security for the lender. Buying raw land and building your custom project can be a big financial decision. Contact us to discuss the details before you make the final decision.


A construction loan differs from a term loan in that it is used to finance capital projects which are completed over time. Payments are advanced periodically based upon work completed, with interest charged on amounts outstanding. Principal payments only commence after the project is finished.

Most banks and institutional lenders require a warranty-approved builder for construction projects. Private lenders may view a warranty-approved builder favourably, but this is not usually a requirement. Private lenders will usually conduct additional due diligence, such as reviewing an executed build contract and/or requiring a cost consultant or project monitor during the project.

Once we have received your completed and signed application, the process of obtaining construction financing for your project can take anywhere from 3 days to 2 weeks. We offer both Full Documentation and Stated Income programs, and you will need to provide a line item construction budget. The appraisal of the property, which takes 3 to 30 business days depending on the type and size of project, is also required. After the appraisal is returned, loan documents can be prepared for you to sign.

oan amounts are typically advanced in periodic installments (often monthly) for work that has been completed in the project. In some cases, such as when the project is straightforward or of a shorter duration, the lender may provide the full amount of the loan upfront.

Call us to arrange an inspection of your property, also known as a progress report. It usually takes 1-3 days for an inspector to come to your property. Construction funds are released in parts based on the approved line item budget. After a successful inspection, we can authorize the release of the draw, which will take 1-3 business days.

No. You only pay interest on the amount you withdraw from the total loan amount.

Most lenders prefer applicants with past experience as a General Contractor for a construction loan. However, there are some lenders who will consider Owner/Builders and Investors, provided they will be using a licensed contractor or subcontractors during the construction process.

The Future Value of a property is determined by appraising it as if it were already finished, taking into account the estimated time of completion and comparing it to similar properties in the area

On average, an independent 3rd party inspector is required to perform 7 inspections during a construction project. The number of inspections may differ depending on the type and amount of the project being financed.

To qualify for a construction loan, most lenders prefer a credit score of 650 or higher. However, we can work with lenders who accept scores as low as 500.

You are responsible for all upfront expenses, such as cleaning the land, plans, permits and project management fees, and these costs cannot be included in the construction financing.