Construction Loans for New Developments or Major Renovations
At Smart Capital, we specialize in structuring construction financing for ground-up developments, repositioning projects, and major renovations across Canada. Whether you're a first-time sponsor or an experienced developer, we align your project with the right lenders, loan types, and funding timeline to ensure your build moves forward smoothly, from land acquisition to lease-up.
First-Time Sponsor Focus
Types of Construction Financing We Offer
Construction financing isn’t one-size-fits-all, it’s often layered. We help you structure and source:
Senior Construction Debt
Mezzanine Financing
Land Loans
What Lenders Expect
To secure favorable terms, lenders will expect you to demonstrate clear feasibility and risk management. This includes:
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A solid development pro forma with contingency buffers
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Clear exit strategy (refinance, sale, or CMHC take-out)
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A strong GC contract and development team profile
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Adequate borrower equity contribution (usually 15%–30%)
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Updated project timeline and permits in hand
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Experience or a plan to compensate for lack of it
We help you package all these elements in a compelling lender presentation and match your profile with construction lenders aligned with your asset class and geography.
Ready to Get Your Project Financed?
Whether you're working on land acquisition, zoning approval, or breaking ground, we can step in and structure a solution tailored to your needs.
❓ FAQ – Construction Financing in Commercial Real Estate
A construction loan funds the cost of building or renovating a property. It is usually short-term, interest-only during construction, and disbursed in stages (draws). Once the project is complete, it is refinanced into a permanent loan.
Lenders typically require developers to contribute 15%–30% of the total project cost as equity, though this can vary depending on the asset type and location.
Most lenders allow some buffer in the timeline, but repeated delays may require extensions or renegotiation of terms. It’s important to build a contingency margin into your construction schedule and budget.
Yes, but you’ll likely need to work with experienced partners, such as a general contractor, project manager, or development consultant. Some lenders may require co-signers or joint ventures.
You'll typically need a detailed project budget, timeline, architectural drawings, municipal permits, contractor agreements, a pro forma, and proof of equity.
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