Draw-based funding
Unlike a standard mortgage, construction financing is released in draws as your project hits milestones.
Draw-Based Releases
Funds are released in 3–5 draws as construction reaches pre-agreed milestones — foundation, framing, lock-up, and completion.
Progress Inspections
An inspector verifies each milestone is complete before the next draw is released. This protects you and the lender.
Completion Mortgage
Once the build is complete, the construction mortgage converts to a standard mortgage with regular monthly payments.
When funds are released
Foundation & Backfill
Released once the foundation is poured and inspected, excavation backfilled.
Framing & Roof
Released when framing is complete, roof sheathed, and windows/doors in place.
Lock-Up & Mechanical
Released when plumbing, electrical, HVAC roughed in and building is weather-tight.
Interior Finishing
Released when drywall, flooring, cabinets, and fixtures are substantially installed.
Final Completion
Holdback released after final inspection, occupancy permit, and all deficiencies resolved.
What you'll need
Lending options
A Lender Construction
Best rates for borrowers with strong credit, verifiable income, and conventional builds. Lowest cost of borrowing.
B Lender Construction
Alternative lenders for self-employed builders, lower credit scores, or unconventional projects. Slightly higher rates.
Private Construction
Equity-based approval for complex builds, remote properties, or when speed is critical. Interest-only during construction.
Ready to build your dream home?
Speak with a licensed Tordon advisor today.