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Construction Draw Mortgage

Key Features:

Customers receive funds at various stages of completion of the construction of a new owner occupied home

A first advance is available to assist with the purchase of vacant land or as equity take-out when the lot is already owned (up to 65% of the property lending value of vacant land – uninsured only)


Customers purchasing land or requiring equity take-out on land for immediate construction of a principal residence or cottage and leisure home for their own personal use

Customers who already own their land and require funds to cover immediate construction costs prior to the first construction advance being available at the airtight stage.


18 Months

Maximum 15 Month Construction Period - Construction must be completed within 15 months from the date of the 1st advance


Prime Rate plus 1.00%

Interest Only payments (based on the amount advanced)

End of 15 Month Construction Period

Amount advanced to date will be renewed into a fixed rate or variable rate mortgage

Maximum Loan to Value Ratio

Uninsured: Up to 80% LVR

Insured 1-2 Units: Up to 95% LVR

Insured 3-4 Units: Up to 90%LVR (CMHC Only)

Eligible Properties

Land must be zoned for residential or vacation home use

Owner-occupied or Rental with a maximum of 4 units (CMHC Insured: owner-occupied only; Genworth Insured: owner-occupied only - maximum of 2 units)


Appraisal and progress inspection fees may be deducted from each draw


Insured: Maximum 25 years

Uninsured: Maximum 30 years

Qualifying Rate

Qualifying Interest Rate will be the 5-year benchmark rate


Optional First Advance Prior to Start of Construction (Uninsured Only): 65% of the lending value of the vacant land

Optional 15% First Advance (Insured Only): At 15% complete; Excavation and foundation complete

40% First Advance Received: At least 40% complete; Roof is on, the building is weather protected (i.e. airtight, access secured)

65% Second Advance Received: At least 65% complete; Plumbing and wiring is started, plaster/drywall is complete, furnace installed, exterior wall cladding complete, etc.

85% Third Advance Received: At least 85% complete; Kitchen cupboards installed, bathroom completed, doors have been hung, etc.

100% Fourth Advance Received: 100% complete


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