Dreaming of building your perfect home in Canada—designed exactly the way you want it, on your own land or with your chosen builder?
At Citadel Mortgages, we make it simple to finance your custom home construction with flexible draw mortgages, expert support, and access to Canada’s top lenders—all structured to make your build stress-free and financially sound with our commercial lending department.
🔨 Finance your custom home project from land to final inspection
💸 Interest-only payments during construction
🧾 Funds released in stages based on progress (draws)
✅ CMHC-insured and conventional options available
🏡 Build on your own land or a builder’s lot
A new home construction mortgage is a financing solution that provides the funds needed to build a home from the ground up. Unlike a standard mortgage that’s paid out all at once, a construction mortgage releases funds in predefined stages (draws) as your build progresses.
With Citadel Mortgages, you can build with confidence knowing you’re backed by expert guidance, flexible options, and a network of top lenders.
Here’s how it breaks down:
Initial Approval & Land Purchase (if needed)
Draw Schedule Created – typically 3 to 5 draws based on build stages
Construction Begins
Appraisal & Inspection After Each Stage
Funds Released to Builder or Contractor
Final Inspection & Conversion to Traditional Mortgage (Completion Mortgage)
📌 Construction loans can be structured as “draw mortgages” or “completion mortgages”, depending on your situation.
Perfect for clients managing their own build or hiring contractors.
For homes built by licensed builders with fixed-price contracts.
Funds are advanced only after the home is 100% complete—ideal for builder-financed projects.
Helps lower your down payment and get better rates when building energy-efficient homes.
To qualify for a new construction mortgage in Canada, lenders will typically look for:
🧾 Proof of land ownership or builder contract
📐 Detailed construction plans and budget
👷 Licensed builder or proof of self-managed build
💰 Minimum 5%–20% down payment (based on insurer/lender)
✅ Strong credit score (typically 680+)
🧮 Verified income and affordability
At Citadel Mortgages, we match you with the right lender based on your budget, timeline, and project scope.
| Stage | % of Funds Released | Description |
|---|---|---|
| Land or Foundation | 15–20% | After land prep or foundation poured |
| Framing | 25–30% | Once walls and roof are in place |
| Lock-Up | 20–25% | Doors, windows, roofing complete |
| Interior Work | 20% | Drywall, flooring, electrical, HVAC |
| Completion | 10–15% | Final inspection, occupancy certificate |
We understand building a home is one of the biggest decisions you’ll make. At Citadel Mortgages, we offer:
We’ve helped hundreds of Canadians build custom homes across provinces.
From CMHC-insured to conventional draws—we structure your mortgage around your timeline.
Our team guides you through inspections, appraisals, and contractor coordination.
We compare construction loan offers from major banks, credit unions, and private lenders.
We fund new home builds in:
Ontario (Toronto, Ottawa, London, and more)
British Columbia (Vancouver, Kelowna, Victoria)
Alberta (Calgary, Edmonton, Red Deer)
Saskatchewan & Manitoba
Atlantic Canada
And rural areas with serviced lots
❌ Not budgeting for cost overruns
❌ Choosing unlicensed builders
❌ Starting construction before financing approval
❌ Skipping insurance or permits
❌ Choosing the wrong draw structure
✅ At Citadel Mortgages, we help you avoid these pitfalls with step-by-step planning and lender coordination.
Yes. If you already own the land, the equity may count toward your down payment, reducing how much cash you need upfront.
Yes, but typically only interest-only payments on the funds drawn, until the home is complete and the mortgage is converted.
We recommend including a 10%–15% contingency buffer in your budget. Lenders may allow flexibility if the appraisal supports the new value.
Yes! We offer construction-to-rent programs and even CMHC MLI Select for multi-unit rental developments.
Once your documents are in order, approval can take 2–4 weeks. We prioritize fast closings when build timelines are tight.
A new home is more than just a property—it’s your future. Whether you’re a first-time builder or an experienced investor, Citadel Mortgages has the tools, knowledge, and lender network to make your custom build project a reality.
From land purchase to final inspection, we’re with you every step of the way.
Copyright © 2018 Citadel Mortgages
Head Office – 150 King Street West 2nd Floor Suite 335, Toronto, ON M5H 1J9
Alberta Office – 421 7th Avenue S.W., 30th Floor, Calgary, Alberta, T2P 4K9
Nova Scotia Office – 1701 Hollis Street, Suite 800 Halifax, NS B3J 3M8
Saskatchewan Office – 2010 – 11th Avenue 7th Floor Regina Saskatchewan S4P0J3
Newfoundland Office – 1 Church Hill – Suite 201-522 St. John’s Newfoundland A1C 3Z7
New Brunswick Office – 500 St George Street, Moncton NB, E1C 1Y3
British Columbia Office – 900-2025 Willingdon Avenue, Burnaby BC, V5C 0J3
Manitoba Office – 330 St. Mary Avenue, Winnipeg, MB, R3C 3Z5
Disclaimer
Citadel Mortgages operates an information-based website designed to display mortgage rates from its trusted partners. While we strive to present accurate and up-to-date information, we cannot guarantee the precision of the rates or other details provided at all times. Citadel Mortgages assumes no liability for errors, inaccuracies, or damages resulting from the use of the information on this site. Terms and conditions apply, and it is essential to consult directly with a licensed mortgage broker for personalized advice and accurate details about specific products and services. Please note that the rates displayed are for informational purposes only and may differ from actual rates offered.
Citadel Mortgages is licensed to operate in the following jurisdictions:
Instant Approval, Conditional Approval, Pre-Approval
All approvals are subject to credit and underwriting approval. Not all borrowers will qualify for conventional or equity financing. The receipt of an application does not constitute a financing approval or guarantee of an interest rate. Restrictions apply. The Annual Percentage Rate (APR) is subject to underwriting and approval, and fees and terms may vary. Contact us for the most current rates and further information about specific products. OAC (On Approved Credit).
We remain committed to delivering outstanding service, transparency, and ethical practices. Please note that some rates are province-specific and may change without notice. Rates may not be available in Quebec; please contact us directly to confirm availability and approval.
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