Construction Loans

At GreyPine Capital, we are uniquely positioned to provide home owners, builders, and developers with efficient construction mortgages and creative financial solutions for all their construction needs.

Whether you are planning on tearing down old properties and building new homes, building a large luxury custom home, or if you require financing for a major land development project: At GreyPine Capital we have the right financial solution for you.


Types of Construction Mortgages

Generally, there our two types of construction mortgages:

  • Progress Draw Mortgage
  • Completion Mortgage


Progress Draw Mortgage

In a Progress Draw Mortgage money is disbursed as the construction progresses. This mortgage product is sometimes also called a Self-Build Mortgage. A Progress Draw Mortgage usually has 4 “draws”.

The first draw is land only – typically 50% to 60% of the land value.

The second draw is called the Lockup Stage. At this stage 30% to 40% of the construction is complete – in other words this draw takes place when the foundation, framing, doors, window installations, roof and roughed in plumbing and electrical wiring have been completed. Some lenders also provide a draw when the foundation of the house has been completed.

The third draw takes place at 65% completion. This is when full plumbing, electrical wiring, bathrooms, kitchen cabinets, and other fixtures have been completed and installed.

The fourth and final draw would take place after all the interior and exterior of the house is complete.

It is important to keep in mind that each stage of the draw is first verified for completion by a report from an appraiser. Some times lenders will hold 10% of the construction costs as “holdback for builder liens” as contingency to mitigate the possibility that some trades people may not have been paid.

It is also very important to note that the final advance will not be released until the completion mortgage documents have been signed by the owner. After the final draw, the progress draw mortgage converts into a regular mortgage.

At GreyPine capital, we work with you during all stages of your progress draw and ensure that every draw you make on your construction project is a smooth one. We promise to eliminate unnecessary delays, and will provide you with expert guidance to make the entire construction process easy and simple. Please call us today to get the very best in customer service!


Completion Mortgage

A completion mortgage is when a person buys or builds a home through a Residential Home Builder and requires a mortgage when the house has been fully constructed.

In this mortgage, the buyer is only required to make a down payment at the time the builder accepts their offer to purchase the house. Often, the down payment is broken down into a series of two to three installments.


For example:

A buyers submits an offer to the purchase a house being built by a builder for $450,000. The house construction will take 1 year to complete. Therefore, the buyer will have to provide the builder with a down payment, and pay the balance after the house has been completed (The amount of the down payment depends on the purchase price of the property). Usually the transaction is broken down as follows:

$11,250 with the offer to purchase

$11,250 in 60 days

$11,250 in 90 days

And then the balance of $416,250 on closing i.e. 1 year from now.

Building your own home is very exciting but can also become very stressful. Therefore, having professional advice and guidance is crucial because it allows the owner, developer, or builder to focus all their attention and energy on the project (instead of running around and trying get their financing in order).

At GreyPine capital, we work with you during all stages of your completion mortgage and ensure that everything is processed smoothly. We promise to eliminate unnecessary delays, and provide you with expert guidance to make the entire transaction process easy and simple to understand and navigate. Please call us today to get the very best in customer service!