Construction Financing in BC
Progress Draw Mortgages and Development Financing for Vancouver Island Builders.
Financing a construction project is fundamentally different from financing a completed home. The lender needs to understand the build schedule, release funds in stages as work is completed, and assess risk across a project that does not yet exist in its final form. Not every broker understands this process, and choosing the wrong financing structure at the start of a build can create serious problems later.
I am Kevin Blue. My 25-year career has been built entirely around private lending, construction, and commercial financing. I arrange construction mortgages for builders, owner-builders, and developers across Vancouver Island and BC, from single custom homes to larger development projects.
How Construction Financing Works
A construction mortgage releases funds in stages, called draws, tied to the progress of the build. Typical draw schedules release funds at foundation completion, framing, lock-up, and final completion, though the specific structure varies by lender and project. Each draw typically requires an inspection confirming the work has been completed to the stated stage before funds are released.
Interest during construction is usually calculated only on the funds drawn to date, not the full approved amount. This keeps carrying costs lower during the build phase compared to drawing the entire amount upfront.
Land and Construction Combined Financing
Many builds require financing for both the land purchase and the construction itself. I structure combined land and construction financing so clients are not managing two separate approval processes and two separate sets of lender requirements.
Spec Build and Development Financing
For builders constructing speculative homes or larger development projects, financing requirements are more complex and the lender pool narrows considerably. I work with lenders — institutional and private — who understand development risk and can structure financing appropriately for spec builds, multi-unit projects, and larger developments across Vancouver Island.
Do I need the land already before applying for construction financing?
Not necessarily. Combined land and construction financing is available and I structure this regularly for clients who need both pieces financed together.
How do construction draw schedules work?
Funds are released in stages tied to build progress, typically confirmed by an inspection at each stage. The specific schedule and number of draws varies by lender and project size, and I will walk you through exactly what to expect for your specific build.
Can you finance a spec build or development project on Vancouver Island?
Yes. This is one of my core specialties. Spec builds and development financing require lenders who understand the risk profile differently than a standard owner-occupied construction mortgage, and I have the relationships to make these deals work.
How do I get started?
Book a free call. I will ask the right questions, review your situation, and give you a clear picture of your options. No forms to fill out first, no pressure to proceed until you are ready.
