New Build & Construction Mortgage Loans in Calgary

Build Your Dream Home with True Value Mortgage

Constructing a new home is an exciting journey. Whether it’s building your dream house from scratch, buying a newly built home from a developer or overseeing your own custom build project yourself, the correct financing is key to making your vision come true.

True Value Mortgage assists homeowners and investors throughout Calgary and its surrounding communities in obtaining the right new build and construction mortgage loans to support their project.

As a well-versed expert with over 20 years experience in mortgage financing, our Managing Director Mandeep Mahey has helped many clients navigate the complexities of construction financing. Whether it is covering required lender conditions or structuring draw schedules we make it focused and clear.

Our mission is simple — get you into the right financing, so you can build a home with confidence.

What Is a Construction Mortgage?

A construction mortgage is a type of loan used to finance the building of a new home, rather tham purchasing an already built property.

Construction mortgages release funds in stages as the building is being built, unlike a traditional mortgage.

This structured funding process is commonly referred to as construction draws, in which lenders disburse capital based on various milestones of construction completion.

True Value Mortgage helps structure construction mortgages to fit your builder’s timeframe and make the necessary funds available as the project progresses.

Construction Mortgage Options Available

When purchasing or building a new home, there are several financing options available depending on your situation and the type of project you are undertaking.

We help clients understand these options and choose the one that best fits their needs.

1. Purchase at Completion (Builder Home Purchase)

One of the most common ways to finance a new home is purchasing a property from a builder that is still under construction but will be

completed before the mortgage begins.

In this scenario, you agree to purchase the property once the builder finishes construction.

Here’s how it typically works:

  • You sign a purchase agreement with the builder
  • The property is constructed over several months
  • Your mortgage closes when the home is completed
  • Mortgage payments begin only after the closing date

One of the advantages of this option is that you can often lock in an interest rate several months before completion, typically between 4 and 12 months.

This protects you from interest rate increases during the construction period.

At True Value Mortgage, we help buyers secure rate holds and prepare financing so that everything is ready when the property is completed.

2. Custom or Turn-Key Home Construction

Custom builds let you create a home per your tastes and then hire an architect to finish the build for you.

With this option, you’re working with a builder who oversees the entire construction process while the lender funds staged draws.

  • The process tends to go like so:
  • You buy the land or you already own it
  • Construction commences with a registered builder
  • The lender disburses funds in installments
  • Each draw is tied to a construction milestone

Typical draw stages during construction may be:

  • Land purchase or initial deposit
  • Foundation completion
  • Framing stage
  • Interior completion
  • Final construction stage

In the construction period, borrowers typically only pay interest on amounts that have been drawn down, rather than the total mortgage amount.

Then, once the home is built and you receive your final draw for funds, or end of construction, the mortgage turns into a traditional mortgage with payment.

We guide the draw schedule and work with lenders so the construction process stays realistic financially.

3. Self-Build Construction Financing

One option is for a homeowner to serve as the General Contractor and take on the entirety of their construction project themselves.

This method gives more oversight of the construction process and can be cheaper than traditional options if done correctly.

But with that comes increased responsibilities.

Self-build — the homeowner undertakes responsibility for:

  • Hiring subcontractors
  • Managing project timelines
  • Coordinating inspections
  • Controlling the construction budget
  • Making sure the project is completed on time

Due to the extra complexity and risk involved, lenders often ask for more paperwork when it comes to self-build construction mortgages.

This may include:

  • Detailed construction plans
  • Cost estimates
  • Builder contracts
  • Project timelines
  • Financial reserves

While self-build projects can be rewarding, they often need strong organizational skills and a good understanding of construction management.

At True Value Mortgage we coach clients through lender requirements to help the financing process go as smooth as possible.

Why Choose True Value Mortgage for Construction Financing

Construction financing can be more complex than traditional mortgage approvals.

Working with experienced mortgage professionals ensures the process is handled correctly from the beginning.

At True Value Mortgage, we provide expert guidance to help clients secure the right financing for their construction projects.

Decades of Mortgage Experience

Our Managing Director Mandeep Mahey brings decades of experience in the mortgage and real estate financing industry.

This experience allows us to navigate complex construction mortgage requirements and provide clear guidance throughout the process.

Access to Multiple Lenders

Unlike banks that offer limited mortgage products, we work with a wide network of lenders including:

  • Major Canadian banks
  • Credit unions
  • Alternative lenders
  • Specialized construction lenders

This allows us to compare multiple financing options and help clients secure competitive mortgage terms.

Customized Financing Solutions

Every construction project is different.

We take the time to understand your plans, your builder’s requirements, and your financial goals before recommending mortgage solutions.

Our goal is to structure financing that supports your project timeline and budget.

Step-by-Step Guidance

Construction mortgages involve several steps and approvals.

Our team guides you through every stage including:

  • Mortgage pre-approval
  • Builder documentation
  • Budget planning
  • Draw schedule setup
  • Final mortgage conversion

We ensure the process is organized, transparent, and efficient.

Construction Mortgage Process

Understanding the process ahead of time helps reduce stress during the building phase.

Here is a simplified overview of how construction financing typically works.

Step 1: Mortgage Pre-Approval

Before construction begins, we help secure mortgage pre-approval.

This helps determine:

  • Your borrowing capacity
  • Estimated interest rates
  • Down payment requirements
  • Construction budget limits

Pre-approval ensures you can move forward with confidence when planning your build.

Step 2: Builder and Project Approval

Lenders often review the builder and project details before approving a construction mortgage.

This may include reviewing:

  • Builder credentials
  • Construction plans
  • Project timelines
  • Cost estimates
  • Land ownership details

Our team helps prepare the required documentation and submits it to the lender.

Step 3: Construction Begins

Once the mortgage is approved and construction begins, the lender releases funds through scheduled draws.

Each draw is typically released after a construction inspection confirms progress.

This ensures funds are used appropriately and construction stays on track.

Step 4: Interest-Only Payments During Construction

During construction, borrowers typically make interest-only payments on the funds released.

This helps reduce financial pressure while the home is still being built.

Step 5: Final Mortgage Conversion

Once construction is complete and the final draw is issued, the mortgage converts into a standard mortgage.

At this stage, regular mortgage payments begin based on the full loan amount.

Construction Mortgage Requirements

When construction mortgages are approved, lenders have a range of documents that they typically expect to see.

These may include:

  • Detailed building plans
  • Construction cost breakdown
  • Builder contracts
  • Land ownership documents
  • Down payment verification
  • Project timeline

We help to collect and compile these documents so that the approval goes smoothly.

Areas We Serve

At True Value Mortgage, we help clients secure construction financing across Calgary and surrounding communities.

Our services extend to areas including:

  • Calgary
  • Airdrie
  • Chestermere
  • Cochrane
  • Okotoks
  • Surrounding neighbourhoods in the Calgary region

Whether you’re building in the city or in nearby communities, we can help arrange the right mortgage solution.

Benefits of Building a New Home

Many homeowners are choosing to build rather than buy resale properties.

New construction homes offer several advantages including:

Custom Design

Building your own home allows you to design layouts, finishes, and features that match your lifestyle.

Modern Features

New homes often include energy-efficient appliances, modern building materials, and advanced technology.

Lower Maintenance

Because everything is brand new, homeowners often experience fewer maintenance issues in the early years.

Increased Property Value

Well-designed homes in growing communities can experience strong long-term value appreciation.

Expert Mortgage Guidance for Your Build

Every construction project demands meticulous planning and a decisive consensus to back its execution financially.

We collaborate with homeowners, builders and lenders, so the financing portion of your project can be managed like a true professional.

We aim to streamline the mortgage process while you.

Our team, under the guidance of Managing Director Mandeep Mahey and with our wide experience in providing mortgage solutions for new construction projects throughout Calgary and surrounding communities.

Start Your Construction Mortgage Journey Today

If you are in the market for a new home or a property that’s already under construction, your first step will be locking down the proper financing.

At True Value Mortgage, we assist clients in researching construction mortgage options and inform them step-by-step through the process.

Our team is here to help you whether you’re working with a builder, planning your own custom home, or managing your own build project.

To find out more about New Build and Construction Mortgage Loans in Calgary, contact True Value Mortgage today to take the first step towards building your dream house.