Self-build and new construction

You want to build rather than buy. The lender does not finance a house that does not exist in one go: it advances money in stages, and you often front the money in between.

Land, plans, quotes, permits, contingency, carrying costs during the work: all of it is priced before the first shovel, and determines how much cash you need beyond the down payment.

Price my construction project

I price what you fund yourself between draws

A construction loan releases money in instalments, after inspection, at stages each lender defines its own way. Between two instalments, you pay the contractor. I build the draw schedule next to the work schedule, to see when your cash is called on and for how long.

Few lenders finance self-builds, and those that do have neither the same draw stages, nor the same supervision requirement, nor the same down payment on the land. I go to the ones that accept your structure rather than bending your project to a single policy.

How it works

We set the total cost
Land, plans, signed quotes, permits, and a contingency of at least 10%. Without that, the lender prices nothing.
I calculate the carry
Interest on the instalments, your current housing, the land taxes: what you pay each month during the work.
I target the lenders
Those that finance self-builds, with their draw stages and their supervision requirement.
Draws, then the permanent mortgage
Each instalment follows an inspection. At the end of the work, the loan converts to an ordinary mortgage, with its rate and term.

Two realities discovered mid-build

The money comes after the stage, not before

The foundation instalment is released once the foundation is poured and inspected. The contractor wants to be paid before. Without cash or an arrangement with them, the site stops between two instalments.

The approved budget no longer moves

The loan is set on the budget filed. The overrun, common in construction, is funded with your cash or a second, more expensive financing. The contingency is not optional.

What it costs you

In most files, the lender pays me. A private or specialized construction structure can carry fees, announced in advance. What it costs, in detail

Two calculations before buying the land

The total cost and the carry decide whether the project holds.

Estimate purchase capacityA first ceiling from your income, before adding the double cost during the work.Financing renovationsThe staged-draw mechanics, which also apply to construction.

Frequently asked questions

Does the lender finance the land?

Often in part, with a higher down payment than for an existing home, and sometimes only once the permit is in hand. Land already paid for counts as a down payment.

How do the draws work?

The lender advances the money in instalments at set stages: foundation, closed structure, finishing, completion. Each instalment follows an inspection. You often pay the contractor before receiving the instalment.

Can I do part of the work myself?

Depending on the lender. Several accept self-builds if a professional supervises and if work touching the structure, plumbing, and electricity is done by licensed trades. The labour you provide is not financed.

What if the budget runs over?

The overrun is yours to cover: the loan is set on the approved budget. That is why I ask for a contingency of at least 10 to 15% from the start, and cash to carry it.

Do I pay my rent and the interest at the same time?

Yes, during construction. Interest runs on the amounts advanced, and your current housing keeps costing. That double cost goes into the capacity calculation.

Compare mortgage terms from different lenders.

Major banks, credit unions, and specialized lenders each apply their own criteria, products, and terms. A logo does not mean that a mortgage will be offered or approved.