Construction Mortgages

Construction lending has been our specialty since 1991. We provide financing for single family, and small multi-family, residential projects. Let us use our vast construction underwriting experience to help you get your loan requests achieved. Our construction products are designed to help your clients when the banks cannot.

First Circle Financial can assist with both speculative (spec) builds and owner-occupied (custom) builds.

Spec projects – we are not concerned about debt servicing (GDS/TDS) as the property will be sold at completion. Our main priority is ensuring that the borrowers have sufficient resources, in conjunction with our loan, to bring the project to completion. We don’t need proof of income to support spec deals!

Custom projects – we like to see the borrowers’ ability to qualify for conventional financing at completion. If the clients wish to occupy the dwelling, there is an opportunity for you to assist with the take-out mortgage.

Construction Product Features:

Loan size: $100,000 to $5,000,000
LTV: 70% of the completion appraised value or 85% of land + hard costs
Draws: Funded on a cost-to-complete basis
Payments: Interest only – accrued and deducted from each draw
Prepayment: Open
Term: 8-12 months
Down payment: No history required

Our construction loans are funded on a cost-to-complete basis using our Inspection Report. In most cases, we do not require costly Quantity Surveys.

Please note that we require New Home Warranty coverage on all construction deals.

It is imperative that each builder is able to demonstrate the skills required to successfully undertake each project.

Give us a shout to see how we can tailor our products to meet your clients’ needs. 604-986-3200 or mortgages@firstcircle.ca