For many people in Toronto, building a customized home that meets their precise requirements, is a more desirable option rather than buying an older home that needs upgrading. 

While this is a great idea, there is a difference between qualifying for financing the building of a new home and qualifying for a mortgage to purchase a standing one. 

You can acquire financing when building the home in phases and several financial advances over time. 

What to take into consideration: 

Builder/contractor of the property

When building your new home, it’s important to register with the province’s New Home Warranty programs. The builder/contractor you choose to build your dream home should not only be able to complete the project, but also provide peace of mind that their work is of the highest quality possible. Remember, it is your home and castle, but it is also probably your biggest investment, and like any investment, you want it to grow with time. 

Cost of construction.

The total construction cost must include building costs, the land, and non-building costs such as required permits, interest, etc. Take into consideration the unexpected costs or changes you may need. We suggest saving an additional 15% of the estimated cost to cover any unexpected expenses that can and do arise, for unforeseen issues like high cost of fuel, or supply chain issues. 

Duration of construction.

The maximum term on construction is one year from the date of the first advance.

Available equity upon down payment.

You must present the down payment at the time of application from whatever sources are available to you. The minimum down payment depends on the lowest assessed value or construction cost; besides the amount you desire to borrow.

Availability of funds.

The first part of construction financing is called the draw through a lawyer. Once a draw is requested, an appraiser will inspect and confirm all the completed work at that stage.


AG Mortgage Team


Proof Of Employment & Income

Current employment status and income amount as: 

  • Copy of current payroll. 
  • Proof of current electronic deposited pay. 
  • Associated Notice of Assessment (NOA) & T1 General. 
  • Additional income sources (if any). 
  • Prior employment status (if required).
Basic Financials
  • A List of your current assets and obligations.
  • Bank account alongside transit number for payments.
  • CIBC Pre-approved Mortgage Certificate (if valid).
Down Payment Verification
  • Statement of investments from within the latest 90 days or savings.  
  • Withdrawing an amount from RRSP through Homebuyer’s Plan (if valid). 
  • Gift letter. 
  • Copy of the sale agreement of a sold current asset.  
Details of the Property
  • A copy of the real estate listing.
  • A copy of the sale agreement and accepted purchase.
  • Full address of the property (legal description and postal code).
  • Tax estimates of the property, heating costs, and condo fees (commonly, you may find these details on the real estate listing). 
  • Well and septic certificate regarding rural properties.
  • Lawyer’s full details (name – address – telephone and fax number – postal code).

Lending Partners

CHIP Reverse Mortgage
EQ Bank
Street Capital Financial Corporation
RMG Mortgages
Home Trust
First National Financial LP
Community Trust A flexible alternative
Alterna Savings
B2B Bank
CMLS Financial
CWB Optimum Mortgage

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