Financing Your Home

Understanding your financing options is a crucial first step in building your dream home. This section guides you through the fundamentals of construction mortgages, from what they are and the different types available, to how funds are released during the building process. You’ll also learn about completion mortgage options, warranty protection, and the clear steps involved in securing the right financing solution for your project.

GenCorp Homes Inc. is proud to announce an exclusive partnership with Genesis Associates Ltd., our preferred mortgage brokerage. This relationship offers tailored financing solutions to all GenCorp clients – past, present, and future – ensuring access to trusted expertise throughout the homebuilding journey. Genesis Associates Ltd. is a well-established mortgage brokerage based in Mississauga. The firm is led by Rob Munn, B.Sc., a licensed principal broker since 1985. Genesis operates under the Mortgage Brokerages, Lenders and Administrators Act, 2006, with the following license registrations:

Rob Munn, B.Sc. – License #: M080002081

Genesis Associates Ltd. – Brokerage #: 10295 (Principal Broker: Rob Munn)

Whether you’re financing a custom build or planning for the future, Genesis is here to help you feel informed and supported every step of the way.

Construction Mortgage Loans

For many homeowners, purchasing an existing house isn’t the ideal solution. Building a custom home from the ground up offers the opportunity to create a space that’s truly tailored to your lifestyle and vision. To support this, construction mortgages are available as a financing solution specifically designed for new home builds.

Construction financing is ideal for individuals who have purchased or are planning to purchase land with the intention of building their primary residence, vacation home, or secondary property for personal use. These specialized mortgages provide funding at key construction milestones, helping manage the upfront costs of a new build.

What Is a Construction Mortgage?

A construction mortgage is a specialized loan designed to fund the building of a new home. Unlike a traditional mortgage, where funds are released in full at closing, construction mortgages operate on a progress advance basis—meaning funds are disbursed in stages, or “draws,” as each phase of the construction is completed.

This staged approach ensures that financing aligns with the actual progress of your build, from foundation to final finishes.

  • If you already own the land, your first draw may be issued as an equity take-out.
  • If you’re purchasing land, the initial advance can help fund the acquisition of a vacant lot.

This flexible structure allows homeowners to manage construction costs more effectively while maintaining cash flow throughout the project.

Construction Mortgage Financing Options

Each type of new construction—whether you’re hiring a builder, managing the build yourself, or purchasing a newly constructed home—comes with its own set of financing strategies. These options vary based on project timelines, lender requirements, and how the loan is structured.

In Ontario, most construction mortgages fall into one of the following categories:

  • Process-Draw Mortgage: Funds are released in stages (or “draws”) as construction milestones are completed and verified.
  • Completion Mortgage: Full funding is provided once the home is fully built and ready for occupancy.
  • Hybrid Model: A combination of both draw-based and completion-based structures, tailored to the project’s needs.

Understanding which financing model suits your build is an essential part of planning a successful project. We’re here to help guide you through that process.

Advance Stages (Draw Schedule)

Construction mortgages are typically funded in stages, known as draws, which are released as specific milestones in the building process are completed and verified. While the exact schedule may vary by lender, the following is a common draw structure used in Ontario:

1st Draw: 15% Complete Excavation and foundation work is finished.

2nd Draw: 40% Complete Framing is complete, roof is in place, and the structure is weather-tight with secure access.

3rd Draw: 65% Complete Rough-in plumbing and electrical systems are underway, drywall is installed, furnace is operational, and exterior cladding is complete.

4th Draw: 85% Complete Kitchen and bathroom installations are completed, interior doors are hung, and finishing work is well underway.

5th Draw: 100% Complete Home is ready for occupancy; all seasonal and exterior work has been finalized.

Steps To Securing A Construction Mortgage

Securing construction financing involves several important steps. At GenCorp Homes, in partnership with Genesis Associates Ltd., we ensure the process is clear, structured, and tailored to your needs.

1. Initial Consultation: We begin with a detailed discussion to assess your construction goals and financing requirements.

2. Customized Financing Plan: A solution is developed outlining loan details, payment structure, and any relevant expenditures. This stage ensures transparency and alignment with your budget.

3. Document Submission: You provide the necessary documentation to Genesis Associates Ltd. to proceed with your application.

4. Loan Term Confirmation: Terms are reconfirmed based on the submitted documents. Please note: discrepancies may result in adjustments. An appraisal report is required upfront.

5. Commitment Letter Issued: A formal commitment letter is prepared, outlining all approved terms of the mortgage.

6. Legal Review and Signing: You review and sign the commitment with your lawyer. Legal representation is required to protect your interests.

7. Appraisal Completion: The borrower pays for the appraisal. If the appraised value is lower than expected, the mortgage amount may be revised accordingly.

8. Independent Legal Advice (ILA): You must obtain ILA, as required by the lender. Final mortgage documents are signed at this stage.

9. Lender Review and First Draw: Once the mortgage is registered and documentation is approved by the lender’s solicitor, the first draw is released according to the agreed draw schedule.


For more information on construction financing regulations, visit the Ontario Ministry of the Attorney General.

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