Guiding you forward
The best way to find a BC mortgage broker for custom home or construction financing is to ask one question: what happens when your builder needs money before the lender’s next draw? A broker who works construction files regularly will have a real answer, and often a different structure than the bank’s.
At The HomeHappy Team @ Canadian Mortgage Experts, that answer is usually what we call the easy button: private construction financing during the build, then a move to a regular lender once your home is finished.
Banks and credit unions make construction financing sound simple. In practice, they advance money in stages, and only after each stage is complete and inspected: foundation, framing, lock-up, and so on. They also want you to put all of your own money in first.
That works on paper. On a real build, your contractor needs to be paid when the work is done, not when the lender’s checklist is complete. If you haven’t hit lock-up, or whatever stage the lender wants, the money doesn’t come, and you are the one who has to cover the gap. During a build, that gap is where most of the stress comes from.
Some private lenders specialize in construction and understand how builds actually unfold. They give you flexibility on draws, so the project keeps moving when the builder needs funds instead of stalling while you wait to meet a threshold. Our private mortgage guide for BC explains how these lenders work.
It costs more up front. Expect a slightly higher lender fee and a higher interest rate, but only for the construction period. In exchange, the house usually gets finished faster and with far less stress. For many people, that is worth a lot.
The private financing is temporary by design. When your build is within 120 days of finishing, we get your long-term mortgage approved, so you know it’s in place before you need it. Once your occupancy permit is issued, we move you over.
That long-term mortgage is qualified like a regular refinance of any finished home. That opens up a much wider group of lenders than construction financing does, and the rate is usually lower than what a bank charges for a construction mortgage.
This is a real HomeHappy client. We’ve left out anything that would identify them.
A client came to us after taking over a family member’s spec home build. The family member had chosen a big bank’s construction mortgage because the rate was lower. Building wasn’t his line of work, and he quit his job to manage the project. When the build couldn’t meet the bank’s threshold for the next advance, he couldn’t access the funds and ended up in default.
Our client had built several spec homes before and understood how much flexibility a build needs. He bought the project, and we arranged private construction financing to pay out the bank and restart the build. He finished the home and sold it for a profit. The lower rate had cost far more than it saved.
If you have plenty of cash and don’t mind using it, a bank or credit union construction mortgage can work well. When you aren’t stretched, it matters less if the builder doesn’t get every window in before a draw, because you can carry the gap yourself. We’ll tell you plainly which route fits your build.
Not sure where your file lands? Our complex files page covers the situations banks tend to turn away, and the broker vs. bank comparison shows how the two approaches differ.
Yes. Most banks and credit unions will lend only up to about 50% of the land’s value. Many will also want to qualify you for the construction mortgage at the same time, or they won’t look at the land at all.
Private lenders can usually go further, often up to 65% depending on where the land is. They are also generally fine if you just want to hold the land for now and build later.
You can, and if you have plenty of cash to carry the gaps between draws it can work well. The risk is the draw schedule: the bank advances money only after each stage is complete, and you have to fund the work until then.
More than a bank up front: a slightly higher lender fee and a higher rate. Both apply only during construction. Once the home is finished, you move to a regular lender at a regular rate.
We get your long-term mortgage approved when the build is within 120 days of finishing. The move happens once your occupancy permit is in place.
Like a regular refinance of any finished home. That gives you a wider choice of lenders than construction financing, and the rate is usually lower than a bank’s construction rate.
Yes. Banks and credit unions usually cap bare land at about 50% of its value and often want the construction mortgage approved at the same time. Private lenders can often go to 65%, depending on the location, and are generally comfortable if you want to hold the land and build later.
Call or text 604-833-4663 (HOME) or book a free strategy session below. Bring your plans, your builder’s schedule and your budget, and we’ll tell you plainly which financing route fits.
About the author: Michael Lloyd has been in mortgage lending since 1988 and a licensed mortgage broker since 1999 (BCFSA licence #MB614593). He founded and led DLC Canadian Mortgage Experts to $1.8 billion in mortgage volume in its best year, and more than $14 billion closed from 2010 to 2025, before returning to full-time client work. Michael leads The HomeHappy Team @ Canadian Mortgage Experts, co-brokering under Indi Mortgage, serving homeowners across British Columbia with strategy-first mortgage planning and lifetime mortgage management. In 2017, he testified before the House of Commons Standing Committee on Finance on Canada’s mortgage rules — two of his three recommendations became federal policy in 2024.
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