Construction Financing for Commercial Projects in Alberta and BC
Legacy Mortgage Group provides construction financing solutions that help developers and investors bring their projects to life across Alberta and BC. From the first shovel in the ground to the final inspection, we’ll be with you with guidance and expert advice, every step of the way.
Our team understands the challenges of building in Western Canada—tight timelines, seasonal delays, and complex approvals—and we’re here to guide you every step of the way. Whether you’re starting a new build or planning a major renovation, Legacy offers flexible financing, competitive rates, and expert advice to get the right funding solution for your needs.
Why Choose Legacy?
Loans from $250K to $50M
Flexible terms & competitive rates
Expert guidance from start to finish
Understanding Construction Financing in Western Canada
Construction financing is quite different from a regular mortgage. Instead of getting all the money upfront, funds are released in stages as your project moves forward. During construction, you usually make interest-only payments, which helps manage cash flow.
Once the project is complete, the loan can switch to a long-term mortgage. This type of financing is designed for developers and investors who need flexibility while building. In Alberta and BC, lenders also look at things like permits, timelines, and local market conditions before approving a construction loan.
How Construction Financing Works in Alberta and BC
The construction financing loan process is relatively simple! We’ll help you along this step-by-step approach to keep your project funded and moving forward without unnecessary delays. Here’s how things usually go, from approval to project completion:
01
Approval
We’ll help you submit all the necessary parts of your application to the lender, including your plans, budget, timeline for review, and more.
02
Draw Schedule
After you’ve been approved, funds are released in stages as work is completed.
03
Inspections
Each stage is checked by the lender before the next draw is approved.
04
Conversion
When the project is done, the loan can turn into a permanent mortgage!
Types of Development Projects We Finance
Legacy Mortgage Group offers flexible financing for a wide range of commercial development projects in Alberta and BC. Our team specializes in understanding the unique requirements of each project type and can secure the right funding for your specific needs.
Apartment Building Construction
We can help you secure financing for new multi-unit residential developments.
Office Complexes
We specialize in funding the development of new office buildings and complexes.
Retail Centres
We provide retail construction financing for new shopping centers, strip malls, and tenant improvements.
Mixed-Use Developments
We can assist with financing for complex projects that combine residential, office, and retail spaces.
Industrial Warehouses
We can help you secure loans for constructing industrial warehouses and manufacturing facilities.
If you’re not sure what you need, we’ll help you determine the best solution for your business goals, financial profile, and any other regulatory or location requirements.
What Makes a Project Eligible for Funding?
To secure construction financing approval, lenders will assess both the developer and the project itself. These are some of the key factors that are evaluated:
Developer Experience
Lenders want to see a track record of successful projects and a proven ability to manage complex builds.
Project Feasibility
The project’s location, market demand, and overall business plan are assessed to determine its viability.
Financial Requirements
Your financial profile, including your credit history and personal guarantee, will be reviewed to ensure you have the financial capacity to complete the project.
Location Factors
The project’s location and zoning compliance are reviewed to ensure it meets all local regulations.
Once your project is deemed eligible, our expert team can help guide you through the next steps!
Construction Financing Options in Alberta and B.C.
Legacy Mortgage Group provides specific construction financing programs tailored to Western Canada’s construction market dynamics. We offer competitive interest rates and flexible terms to help you bring your projects to life.
Our team can help you secure financing with loan-to-cost ratios that are competitive with the market, up to 95% in some cases. We understand the Alberta and B.C. construction market and can help you navigate the specific requirements of each project.
Interest Rates and Payment Structures
Depending on your profile and needs, there are interest rate options for construction financing, including both fixed and variable rate structures. During the construction phase, you can also take advantage of interest-only payments, which helps you manage your cash flow and focus your resources on the build itself.
Our team will help you find the best rate and payment structure for your project and financial profile. Managing your cash flow during the build is critical, and our draw schedule process is designed to make it simple and transparent.
Draw Schedule Process and Fund Disbursement
If you receive approval to fund a commercial construction project, you’ll most likely be on a draw schedule. This means that funds are released in stages, based on project milestones and completion percentages.
To receive a draw, an inspection is required by the lender to verify the work has been completed. Our team will guide you through the documentation needed for each draw and the typical disbursement timeline to ensure you have the capital you need exactly when you need it.
While our process is streamlined, local timelines can vary, and can even differ depending on if it’s an Alberta or B.C. draw schedule disbursement.
Private Construction Financing Solutions
If your commercial construction project doesn’t meet lender criteria, or is too complex for traditional applications, don’t worry! Our commercial mortgage experts will work with specialized private commercial lenders as a flexible solution.
Our network of private lenders provides an alternative to traditional banks, with a focus on project viability and developer experience rather than just credit score. We can help you secure funding for complex or unique projects, including those with tight timelines or unconventional property types.
So, when is the right time to consider private funding? Here are a few scenarios where it offers a distinct advantage.
When Do You Need Private Construction Financing?
Private construction funding offers significant advantages for certain scenarios where time and flexibility are crucial. You should consider private financing for quick close commercial financing needs, such as a time-sensitive opportunity or a complex or unique project.
Private lenders are also a good option for credit challenges that may be a barrier at a traditional bank. Private lenders often evaluate deals based on the property’s value and income potential, making them a strategic tool for time-sensitive commercial deals.
Getting Started with Your Construction Project
Ready to get started? Your journey to securing the right construction financing begins with a single, no-obligation conversation. We’ll help you with pre-approval, document preparation, and project planning. Once you have a clear plan, here is what our construction financing application process looks like.
Construction Financing Application Process
We’ve designed our construction loan application process to be streamlined and efficient. We will provide you with a checklist of all the required documentation, including:
- Project plans and budget
- Permits and approvals
- Financial statements
- Construction schedule
- Contractor information
Once we’ve helped you compile all the required documentation, we’ll make sure your application paints your project in the best light to receive approval and a great rate. Your success is our success, so our team of mortgage experts is committed to getting you the best possible financing solution for your needs.
Meet Our Experienced Commercial Mortgage Team
Legacy Mortgage Group is your partner for construction financing in Alberta and B.C. From $250K to $50M+, we provide the funding, advice, and support you need to complete your project successfully.
Contact us today for a consultation and take the first step toward building your vision.
