Bring the construction budget, cash requirements and completion plan into one conversation before work begins.
A build has a different funding rhythm
Construction financing may release funds in stages as work progresses. The lender’s draw schedule, inspections and conditions determine when funds become available. Confirm how deposits and early invoices will be paid before assuming a future advance will cover them.
Bring a complete project brief
The land, plans, permits, builder agreement, itemized budget and intended completion date help define the request. An appraisal and lender review may look at the expected completed property as well as the project today.
Plan for gaps and changes
Construction costs and timing can move. Ask how changes, delays, inspections, holdbacks and cost overruns affect access to funds. Keep an explicit contingency and understand which costs must be funded from your own cash.
Know what happens at completion
Clarify the transition from construction borrowing to the final mortgage. Ask which completion documents and conditions must be satisfied, whether qualification is revisited, and how the final rate and repayment terms are set.
Plan for draw timing and your cash contribution
A construction facility may release funds only after specified milestones and inspections. Ask what work you must fund first, which costs qualify and how changes are approved. Keep a contingency for overruns and delays.
Review the transition after completion
Confirm whether the proposed structure includes long-term financing or requires a later approval. Occupancy documentation, valuation and borrower circumstances can still matter at completion. Do not treat a future refinance as automatic.
Questions to bring to your mortgage conversation
Will construction funding arrive before each contractor invoice?
Not necessarily. Draw conditions and inspection timing can create gaps. Review the funding schedule against the contractor’s payment schedule before starting.
How does this apply to your plans?
No obligation. A personal conversation with Tajwar.
Further reading: RBC: Construction mortgage overview
General information, not a commitment to lend. Mortgage eligibility, costs and terms depend on your circumstances and the lender.