Commercial construction financing is structurally different from term mortgage debt. We structure draw facilities that advance funds progressively as milestones are verified, ensuring your BC development project remains adequately capitalized from foundation to completion.
Unlike a term mortgage, a construction facility advances funds in stages. Getting the facility structured correctly from the outset determines whether your BC commercial development stays on timeline and budget. Success requires:
Metro Vancouver concrete build in progress.
BC institutional lenders require developer equity to be the "first money in and last money out." This ensures the borrower is fully committed to the project before lender capital is at risk.
View Capital Requirements →The most active category in BC. Access to CMHC MLI Select construction programs offers high LTV and aggressive rates.
Requires dual-underwriting for the takeout; residential and retail components are assessed separately for pre-leasing requirements.
Strong appetite in Metro Vancouver and Fraser Valley. Lenders focus on low vacancy and high replacement value.
Institutional lenders typically require anchor tenant commitments or significant pre-leasing before advancing construction draws.
Yes. Most BC construction lenders require a detailed takeout plan or a committed source for the permanent mortgage as a condition of construction financing approval.
Yes. CMHC construction programs are among the most favorable structures in Canada, allowing for higher leverage and lower costs than uninsured builds. Learn more.
Cost overruns must be covered by the borrower through additional equity or mezzanine capital. The construction lender's max advance is fixed based on the original budget.
Once a draw request is submitted and the independent inspection report is certified, funds typically advance within 5–7 business days depending on the lender.
