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Financing · BC & Alberta

Construction, Commercial & Residential Financing

From a first home to a commercial building to a ground-up duplex, laneway or multiplex — I arrange financing across the full range of lenders. Below: how each track works, a construction draw-mortgage calculator, and exactly what you need to start a small build under BC’s new housing rules.

Three Tracks

What I help finance

Residential

Homes & 1–4 units

Purchases, renewals, refinances, first-time buyers, self-employed and newcomers — including duplexes and fourplexes, which still finance as residential.

Commercial

Commercial & multi-residential

Owner-occupied premises, retail/office/industrial, mixed-use, and 5+ unit apartment buildings, including CMHC MLI Select insured options.

Construction

Build & development

Draw mortgages for ground-up builds, major renovations, and small-scale development — laneway homes, duplexes and multiplexes.

Residential mortgages

The bread and butter: financing for owner-occupied homes and small rental properties of one to four units. Because a fourplex is still “residential,” many small multi-unit projects qualify for residential rates and amortizations rather than commercial terms — a meaningful cost difference. If you’re buying, renewing or refinancing, start with the calculators or the specialty pages for self-employed and newcomer buyers.

Commercial & multi-residential financing

Commercial financing is underwritten on the property’s cash flow, not just your personal income. Lenders look at net operating income, debt-service coverage (DSCR), and the cap rate, then typically lend to about 65–75% of value with shorter amortizations than a home loan. Common types I arrange:

  • Owner-occupied commercial — the premises your business operates from.
  • Investment / income property — retail, office, industrial and warehouse.
  • Mixed-use — residential units above commercial at street level.
  • Multi-residential (5+ units) — purpose-built rental and apartment buildings, where CMHC MLI Select insurance can unlock higher leverage, longer amortizations and better rates for projects that hit affordability, energy-efficiency or accessibility points.

Commercial deals need a fuller document set (leases, rent roll, financials, environmental) and more lead time — worth a conversation early.

Construction & renovation financing — how draw mortgages work

A construction (or “draw”) mortgage funds a build in stages rather than all at once. Money is released as work is completed and verified — a typical schedule advances at foundation, lock-up, drywall/finishing, and completion. You pay interest only on what’s been drawn, so your carrying cost ramps up as the project progresses, then the loan converts to a normal mortgage when the home is finished and occupied.

Key things lenders look at, and costs to budget for:

  • Lesser of two limits — lenders advance the lower of a loan-to-cost (your total budget) and an as-complete loan-to-value (the projected finished value). The calculator below shows both.
  • A real budget — a detailed hard- and soft-cost breakdown, ideally a fixed-price contract with a licensed builder.
  • Holdback — BC’s Builders Lien Act generally requires a 10% holdback on construction draws.
  • Carrying costs — appraisals (initial and per-draw or completion), inspection/draw fees, and an interest reserve for the build period.
  • Who lends — some banks and credit unions for straightforward owner builds; alternative and private lenders for spec builds, experienced builders, and tighter timelines.
Free Tool

Construction draw mortgage calculator

Estimate your maximum construction financing, the equity you’ll need, and your interest carry during the build. Every input is editable — these are your numbers, not a rate offer.

Construction and small-development rates are typically higher than standard residential rates and vary widely by lender, project and experience. The rate is an editable assumption, not a quote. Interest is estimated interest-only on roughly half the loan over the term, since funds are advanced in stages. Estimate only — not an approval or an offer of credit.

Estimated maximum construction financing
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Total project cost$0
Equity you’ll need to bring$0
Est. interest during construction$0
Loan-to-value on completion0%
Est. gross margin if you sell$0

Building a duplex, laneway, or multiplex in BC

BC’s small-scale multi-unit housing (SSMUH) rules have changed the math for ordinary homeowners and small investors. Most municipalities must now permit three to four units on lots that were single-family, and up to six on larger lots near frequent transit — alongside long-standing allowances for laneway and garden suites. That has opened three common paths:

  • Laneway / garden suite — an accessory home in the rear yard, often financed by refinancing equity in your existing home or with a construction draw.
  • Duplex — side-by-side or up/down, still financed as residential.
  • Multiplex (3–6 units) — up to four units typically finances residentially; five or more shifts to multi-residential underwriting on the projected rents.

The single most important financing distinction: 1–4 units is residential; 5+ units is multi-residential / commercial. It changes your rate, amortization, equity requirement and document set — so it’s worth confirming your unit count and lender path before you finalize a design.

Zoning, unit limits, setbacks and permit requirements vary by municipality and lot, and SSMUH implementation differs city to city. Always confirm what your specific property allows with your municipality and your design professional — the above is general information, not zoning or legal advice.

What you need to start — documentation checklist

Gathering these early is the difference between a smooth approval and a stalled one. You won’t need every item for every project, but this is the full picture:

You & your finances

  • Government photo ID
  • Proof of income — T4s, pay stubs and an employment letter, or (self-employed) two years of T1 Generals and Notices of Assessment
  • Two years of Notices of Assessment / no taxes owing
  • 90-day history of down-payment and equity funds (bank/investment statements)
  • Current mortgage statement and property tax bill, if refinancing your home for equity
  • Consent to a credit check

The property & project

  • Title / PID and legal description (or purchase contract)
  • Recent appraisal or BC Assessment, plus a survey or site plan
  • Zoning / SSMUH confirmation and any pre-application or permit status
  • Architectural drawings or design plans
  • Detailed construction budget — hard and soft costs
  • Fixed-price building contract or builder quotes; builder’s credentials, insurance and home-warranty coverage
  • Pro forma / projected rent roll for rental units (multiplex)
  • Project timeline and proposed draw schedule

How the process works, step by step

  1. Confirm what your lot allows — zoning and SSMUH eligibility with your municipality.
  2. Rough budget & feasibility — use the calculator above to size the project and the equity needed.
  3. Get pre-qualified — a term sheet tells you your financing envelope before you spend on design.
  4. Design & costing — drawings, a builder, and firm quotes.
  5. Permits — development and building permits where required.
  6. Finalize financing — lock the construction loan and draw schedule.
  7. Build — draws release as each stage is verified.
  8. Completion — convert to a long-term mortgage, refinance, or sell.

Tell me where you are in that list — even step one — and I’ll tell you what financing looks like from here.

Questions

Frequently asked

Can I finance a duplex or fourplex with a residential mortgage?

Generally yes — 1 to 4 units finances as residential. Five or more units moves to multi-residential / commercial underwriting based on the property’s cash flow.

How does a construction draw mortgage work?

Funds are advanced in stages as work is completed and verified. You pay interest only on the funds drawn, and the loan converts to a regular mortgage on completion.

How much equity do I need for a small build?

Lenders advance the lesser of a loan-to-cost and an as-complete loan-to-value limit, so you typically bring 20–35%+ of total project cost depending on the lender, your experience and the project. The calculator estimates it.

Do BC’s SSMUH rules really let me build more units?

Provincial rules require most municipalities to allow three to four units on many single-family lots, and up to six near frequent transit — but exact limits depend on your municipality and lot. Confirm with your city.

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Have a build or a building in mind?

Residential, commercial or ground-up — tell me the project and I’ll map the financing, the equity, and the next step. No pressure, no obligation.