Construction Financing

Construction Mortgage Made Easy with Less Paperwork!

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Are traditional lenders unable to meet your construction financing requirements?

Freedom Capital can offer options with less stringent lending guidelines than the banks, higher loan amounts, high loan to cost ratios, less presales and way less equity requirements than your traditional banks...and all of this at extremely competitive rates and terms.

What is Construction Financing?

Construction financing is a short term mortgage utilized to finance the construction of a real estate project. It is also known as a draw mortgage or builders loan. Construction mortgages are utilized by homebuyers, builders and developers planning to build real estate. These mortgages can be used for the construction of:


Construction Financing Approval Process

Quick and Easy Approval Process

At Freedom Capital, we look beyond the numbers to understand our client’s needs. We as a construction mortgage lender firm caters to everyone and helps borrowers acquire quick and easy financing in as little as 24 hours*.
Issues arise. Whether it be cost overruns, delays due to weather or simply your trades need money fast to avoid liens. With simple terms and relatively less paperwork, we ensure our borrowers can overcome any obstacle.

Construction Financing Mortgage

Obtain Higher mortgage to Costs than the Banks

Current trends in the market are making it hard for builders and developers to obtain enough funds the conventional way. This is due to new lending rules and endless requests for paperwork. We can finance up to 100% of the project based on additional assets and have access to lenders that lend up to 100% loan to cost ratios. When presenting your project to our lenders, we take the extra step to complete due diligence and provide a document package that makes sense for a lender to proceed.

Construction Financing Canada

Common Sense Lending

With a common-sense lending approach and focused team, Freedom Capital is an ideal choice for alternative or private construction mortgages. Borrowers prefer us over banks because of our prominent position in the market. In today’s market, getting your mortgage approved from a bank can take weeks or even months. With our new and progressive mortgage solutions and flexible underwriting, we deliver simple and easy solutions for borrowers.


We’re here to help! We deliver fast and reliable access to money

How is a Construction Mortgage with Freedom Capital different?

At Freedom Capital, our clients receive our professional services whenever they need them. Our reliable ALTERNATIVE source of financing is available for builders and developers from the first draw to the last. With our knowledgeable team, we can help take your projects from un-zoned till construction is complete.
You may have ample equity in your project, but the banks’ stringent rules are hindering you from accessing this equity to capitalize or provide enough funds to finish construction. Whether it be

Issues arise. We aid landowners and developers with our prompt, competitive and reliable construction mortgage solutions for commercial, residential and multifamily projects.

Freedom Capital specializes and is experienced in providing top-notch quality services to our valued clients, especially when it comes to construction financing. With the added benefit of
Freedom Capital has all the solutions with potentially funded up to 100% of construction costs.
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Banks these days have become more stringent in construction mortgage approval process. Their lending policies lead to restrictive lending and limited financing available to you. You might go to a bank in hopes of applying for a commercial construction financing of $3,000,000 only to find that the bank will approve $2,000,000.

Freedom Capital is different. We provide our borrowers with construction financing paired with expert solutions for their projects. We analyze our client’s project in-depth and come up with solutions that have flexible draw options and a program that makes sense. We want to ensure the success of our borrowers on any project that they take on.

At Freedom Capital, we try to offer multiple options or solutions to our clients that most conventional banks don’t. We place our clients and their needs as our top priority.

Funded by Us

Recently Funded Construction Projects


Starting construction on a property takes planning and budgeting skills.  Often expenses are accumulated prior to construction.  A draw mortgage is typically used for single-family homes.  

A Typical draw mortgage can have funds provided at intervals to the builder by their lender as the property gets built. The period can fluctuate, but the funds are often provided in the following draws:

  1. a) Lockup stage
  2. b) Drywall stage
  3. c) Finishing Stage
  4. D) Finally, at the completion 

At Freedom Capital, we review your budget and use our experience in the field, to ensure that you have enough funds to finish your project.

Our goal is to have you finish the project with enough funds and on time.  

By obtaining the right kind of draw mortgage, items such as:  

  • Costs for trades 
  • Materials required for construction
  • Costs for consulting fees and other reports
  • Fees to be paid into the city for rezoning

Can be covered and budgeted for at the beginning of the project.  

Freedom Capital has access to lenders that have a ‘no limit’ on draw advances. We’ve structured deals where the borrower can have access to a draw every month.

At the time of each draw, you are required to submit your Progress Inspection Report. It is a report that shows the amount of progress that has been made. When the lender is satisfied with the report, they will provide the funds for the next draw.

If you wish to know more about draw financing, contact one of our mortgage specialists to help you with your construction financing needs. 

A development loan is a short-term funding option, usually for between 6-24 months. It is designed specifically to assist with the purchase costs and build costs associated with a residential or commercial development project.  An acquisition and development mortgage funds the installation or construction of necessary improvements in a parcel of land. This is so that the raw land can be converted into a developed parcel. As the loan’s name suggests, this loan is used for three purposes: 

  1. The purchase of the land 
  2. Funding required for rezoning, improvements and development.
  3. Building the final product


  • Evaluate its economic feasibility.
  • Determine the offer price.
  • Find out what the land is zoned for.
  • Rezone if necessary
  • Secure your financing.
  • Begin building within zoning laws.
  • Market the land/property to sell.


  • Details of the development site – location, value, the purchase price
  • Development appraisal
  • Development costs
  • Details of the planning permission – what does the site have planning for and what are you planning to build
  • Details of all the applicants, if a limited company then details about the directors:
  • Asset and Liability Statement for all applicants and company
  • Experience with previous development
  • Development and Marketing team details
  • Company Structure

Talk To Your Skilled Acquisition and Development Financing Mortgage Solution Provider

If you decide to venture into a development project, don’t leave it to chance. If you are having trouble arranging financing, talk to a professional and experienced mortgage solution provider like Freedom Capital. We will do our best to assist you in finding the right kind of mortgage for your development property.

There are various reasons why borrowers tend to turn to a construction mortgage lender, such as Freedom Capital, before a bank. In today’s day and age, people have come to realize that getting a mortgage with a private lender is the better option. Here are a few reasons why you should consider Freedom Capital as your mortgage solutions provider:

We focus on finding the best option for you 

You will be amazed by the vast range of options you are presented with. We are dedicated to finding the best solution that is personalized to your needs. 

We can help you find the right solution in a challenging situation 

In case you find yourself in a difficult or unusual situation that you are unable to handle by yourself, do not hesitate to contact us. We will extensively research your situation and mortgage options to figure out the right solution for you. 

We will provide you with our expert advice and find the right construction loan for you

Most banks have restricted their mortgage options and offerings for borrowers. They provide a standard mortgage for every borrower. At Freedom Capital, we have experience in rezoning and development and understand the challenges builders and developers face.   Our team looks at your entire financial picture and provides custom-tailored solutions which make common sense. Freedom Capital will look into and evaluate your monetary qualifications. We will take the time to discuss your goals and then give you our recommendations, all while keeping your best interests in mind. 

If you wish to know more about construction mortgages, contact one of our professional consultants at Freedom Capital. We will only be happy to help you out.

Construction Mortgage can be a daunting task. What are the best options? How do I go about obtaining a construction mortgage? What kind of construction mortgage do smaller lenders such as credit unions provide?

Due to the intricacies of a progress draw mortgage, building a home has numerous stages and checkpoints along the road. Finding a mortgage broker or bank that is knowledgeable about this kind of mortgage is key to walk you through the process and explain each step.

Construction mortgages have different requirements that a traditional mortgage and are deemed a higher risk. Construction mortgages have different requirements than the usual credit score and income requirements.

How are they different? Lenders need to assess that a project will be finished on schedule, the builder is certified and has a track record of producing homes with warranty. Construction mortgage have different qualification methods. We highlight the ins and outs of construction financing.

If you’re constructing a house to use as your primary dwelling, you’ll appreciate:

  • Mortgage rates that are competitive and on par with our top fixed-term mortgage rates.
  • Minimum equity requirements of 25%.
  • Step by Step instruction on what is required at what stage
  • Upfront advice in regards to construction financing

If you’re a speculative builder who constructs houses with the goal to resell them, you can take advantage of:

  • Terms that work with your bottom line
  • Flexible draw schedules
  • Minimum equity requirements of 25%.
  • Lender that understand the building process

Your initial construction draw would typically be spent to buy the land if you don’t already own it. This first draw, which can range up to 65% of the land’s cost. We can work with you and show you different options with buying a feasible plot of land that makes sense for your goals.

Once the house is built, the construction loan would either need to be refinanced into a regular loan or completely paid off via sale or refinance

No construction draw’s full amount is paid to the contractor. The Builders’ Lien Act of a province mandates a construction holdback, which deducts 10% of your general contractor payments. Once work is complete, the remaining 10% will be paid to the contractor after a minimum holding period of 45 days. Such provisions are found in the Builders Lien Acts of Alberta and British Columbia. Provinces have different names for these laws and regulations, such as Ontario’s Construction Lien Act.

After construction is complete, your contractor has 45 days to submit any claims for liens against your property. Once the property is 97% finished, you can be requested to sign a Certificate of Substantial Completion. If you are dissatisfied with the contractor’s work, you are not required to sign this certificate.

Whether you should purchase a home from a builder or obtain a self-build mortgage actually depends on how much control you desire over the construction process.

Self-Build Mortgage

Since building hasn’t yet begun or is just getting started, self-build mortgages provide you a lot of creative control over how your home will look. The main drawback is that you will need to:

  • Complete your own plans and budget
  • Organize your own trades and ensuring that right trades are available at the right avoiding delays.  
  • Find a lender that allows – self-build mortgages. 

Buying From A Builder

When you purchase a home from a builder, ensure that you complete your background checks.  Does this builder have home warranty?  Is the company registered with the local provincial building authority.  You can purchase a concept home prior to construction beginning or you can purchase a home that is nearly complete.   Working with a builder allows you to have help when building your dream home. 

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