SOLUTIONS

Condominium construction loans for major building projects

Large-scale construction projects require a different financing structure than standard term loans. Condominium Lending Group provides construction financing with flexible draw schedules designed around how building projects actually work. Funds advance as work is completed, not all at once.

$500M+

Financing Arranged

100+

Condo Corporations Served

13

Provinces & Territories Served

24 Hour

Initial Response Time

THE CHALLENGE

Major construction projects require financing built for how they work

A standard term loan advances the full amount upfront. Construction projects don’t work that way. Contractors invoice as phases are completed, timelines stretch over months, and costs can shift as conditions change on site. A financing structure that doesn’t match the project timeline creates cash flow problems and unnecessary interest charges.

Major construction projects, including full building envelope replacements, underground parking restorations, and structural repairs, often exceed what reserve funds can cover. These projects routinely run into the millions of dollars. Waiting for the reserve fund to accumulate enough is not always an option when the building needs the work now.

Condo boards managing construction projects also carry governance obligations. Owners need to be informed, bylaws may need to be passed, and the board needs to demonstrate it has evaluated the full range of financial options before committing to a project of this size.

THE SOLUTION

Construction financing that matches how projects actually get funded

Condominium Lending Group structures construction loans with draw schedules that match the project timeline. Funds advance as work is completed and certified. Your corporation draws what it needs at each stage, so interest only accumulates on amounts already spent.

During construction, interest is charged only on amounts drawn. Once the project is complete, the loan converts to a fixed term repaid through monthly contributions from unit owners. Loan terms can be fixed for up to 10 years with amortization periods structured around the useful life of the asset being financed.

We work directly with your engineers, project managers, and contractors throughout the project. Certification documentation, draw requests, and advance schedules are handled in-house, which avoids delays at critical payment points.

THE PROCESS

How Condominium Construction Financing Works

Most corporations receive an initial response within one business day. Here is what the process looks like from first contact to funded.

01

Contact Us

Reach out with a brief description of your building, the financing need, and your timeline. You do not need final pricing or a confirmed project scope to start the conversation.

02

We Assess Your Situation

We review your reserve fund study, financial statements, and project details. Most corporations receive an initial response and preliminary financing overview within one business day.

03

Your Board Presents The Option

Once approved, funds are deployed directly to your corporation. Your building gets the work done with no special levies and no financial disruption to owners.

04

Condo Gets Funds Advanced

Once the bylaw is approved, funds are advanced directly to the corporation. Repayment begins through monthly common expense contributions.

WHO WE WORK WITH

Condo Corporations And Strata Councils Across Canada

The different types of corporations that Condo Lending works with across Canada.

Residential Condo Corporations

Registered condo corporations in Ontario, BC, and Alberta facing reserve fund shortfalls, unexpected repairs, or capital projects where the cost exceeds available reserve funds.

Strata Corporations

BC strata corporations dealing with a strata special levy or contingency reserve fund shortfall. Financing works the same way under the Strata Property Act as it does under the Condominium Act.

Mixed-Use And Commercial Condos

We understand that our financing decisions affect real people — unit owners, board members, and the communities they live in. We take that responsibility seriously in everything we do.

COMMON QUESTIONS

Condo Construction Financing — Questions Boards Ask

FAQ

What is the difference between a construction loan and a term loan?

A construction loan advances funds in draws as work is completed rather than all at once upfront. During construction, interest is charged only on amounts drawn. Once the project is complete, the loan converts to a term loan with a fixed interest rate repaid over the amortization period. A term loan advances the full amount at once and begins repayment immediately. Construction loans are appropriate for projects that take months to complete with phased contractor payments.

Is an engineer required to certify draws during construction?

For larger or more complex projects, an engineer or qualified professional is required to certify that work has been completed satisfactorily before each draw is advanced. This protects both the corporation and the lender by ensuring payment is made only for work that has been properly completed. For smaller projects, alternative arrangements may be available. Our team advises on what is required based on your specific project scope.

How long can the interest rate be fixed after construction is complete?

Following construction, the loan converts to a fixed term. Loan terms are typically fixed for up to 5 years and in some cases up to 10 years. The amortization period, meaning the total time to repay, cannot exceed the useful life of the asset being financed and in no case exceeds 25 years. Your specific term and amortization are discussed and agreed upon before the loan is finalized.

What happens if a deficiency repair results in a financial recovery later?

If your corporation is using construction financing to fund deficiency repairs while pursuing litigation or warranty recovery, the loan can be repaid from any funds recovered. The interest cost incurred during the period may also be recoverable as part of your litigation claim. This is one of the key advantages of borrowing over special assessments in deficiency scenarios. If recovery occurs, the corporation benefits rather than individual owners who already paid a levy.

How far in advance should we contact Condominium Lending Group?

As early as possible. Boards that engage a lender before finalizing project scope, contractor selection, or owner communication are in the strongest position. Understanding your financing capacity early allows you to communicate a complete, credible plan to unit owners, including the monthly cost impact, rather than presenting the financing as an afterthought. There is no cost or obligation to an initial conversation.

GET STARTED

Talk to a specialist about your construction project

Early engagement makes the process significantly smoother. Contact us before you finalize project scope and we will help you structure a financing solution that fits your timeline.