A new build is financed in stages tied to the work on site, so you have to plan your cash flow between draws. Many buyers only find that out mid-project.
Lenders judge the building as much as the buyer. What it is, what state it’s in and how it will be used can eliminate lenders before your income is even looked at.
Papers the lender asks for
The construction contract, plans, work schedule and warranty plan. Money comes out in tranches as the site advances, and an inspection confirms each draw.
Budget past the payment
The mortgage payment is only one piece. Taxes to the municipality and school board, insurance, heating, upkeep. And many lenders expect a reserve still sitting in your account after closing.
Documents to gather
What the lender will ask for.
How the property will be used
Building type
Appraisal and comparables
Income or leases
Down payment or equity
Lenders that qualify
Frequently asked
How is the money released during construction?+
In stages (foundation, structure, finishing, occupancy), each after an inspection. Plan for the cash flow between draws. That gap is where a lot of buyers get caught.
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add contractor quotes and the work schedule. If they’re ready before you make an offer, a short financing window is realistic.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
