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Construction Mortgage

Construction mortgages are designed to allow you to finance the construction of a home and typically only requires interest to be paid during the construction period. A Construction mortgage is a great way to streamline your build’s planning process, simplify your repayments, and help you to minimize costs where it matters most—at the start of your project.

How do Construction mortgages work?

Put simply, a Construction mortgage gives you access to funds (up to 80%* of the of the value of the home you plan to build) so that you can pay for each stage of construction as they happen.

And to help reduce your costs during the build, you’ll only need to repay the interest on the amount that you’ve been advanced for the first 18 months of construction, or until the work on your home has been completed—whichever comes first.

Once your home or residential building’s finished, the loan simply becomes a conventional mortgage with the fixed-term interest rate you locked in when you applied.

What are Vancity’s Construction mortgage rates?

When you apply for a Construction mortgage, we offer a 120-day1 guarantee up-front on interest rate and mortgage terms, so you can begin your project with confidence. And what rate can I get? That depends on what you intend to do with the home:

Vancity Construction mortgage benefits

If you’re building a home that you intend to live in as your primary residence, you’ll enjoy:

  • Competitive mortgage rates—the same as our best fixed-term mortgage rates
  • Equity requirements as low as 20%
  • 18 months allowed for your build period with extensions available in certain circumstances
  • Rental offset can be used (from potential suites or a Laneway home) to help qualification

If you’re a speculative builder (you’re building a home with the intention of selling it) you can enjoy:

  • Competitive rates
  • Rental offset can be used to help with qualification
  • Equity requirements as low as 20%
  • 18 months allowed for your build period with extensions available in certain circumstances

Contact one of our Mobile Mortgage Specialists for fees that apply to the type of home your building.

Let’s get you building

If you have any questions about our Construction mortgage options, or if you’d like to get an application started, feel free to get in contact with one of our Mobile Mortgage Specialists. They’re happy to travel to meet you at your home, office, or any other safe and convenient location.

You can book an appointment for a Vancity mortgage online, or over the phone by calling Member Services Centre at 604-877-7000 or toll free at 1-888-Vancity (826-2489).

And if you’re ready to get an application started right now, simply select the button below.

Book an appointment

*Terms and conditions apply.

1120 day rate guarantee is only applicable for mortgage applications pre-approved on or after November 18, 2022.