Construction Mortgages

Get a tailored mortgage to match your custom dream home. Start the mortgage process with Affinity early in the planning phase of building your home and get ready to begin construction.

Mortgage Calculator

What is a construction mortgage?

A construction mortgage finances the construction of a new home. It acts as a way to manage your cash flow and disburse funds as your build progresses.

Affinity construction mortgage benefits:

  • Save time and money from one mortgage application and one mortgage closing at the end of home construction
  • Opportunity to lock-in interest rates at the start of construction
  • Great rates and pricing options. Check out our Special Offer rates!
  • Flexible down payment options – qualify with as little as 5% down
  • Flexible withdrawal and repayment terms
  • Interest-only payments during your home’s 12-month construction phase
  • Opportunity to switch to blended payments for your post-construction mortgage

What does a construction loan include?

Land purchases:

  • A construction loan includes an initial payment to purchase land.
  • If you already have a loan on a property, the first disbursement can reimburse funds up to a certain percentage (based on land type).


  • Primary residences, vacation homes and residential rentals are all eligible.
  • If your new home construction is financed by a developer or homebuilder, you don’t need a construction loan.

Types of products

Contractor build

To qualify: Own the land prior to construction and you have a contract with a homebuilder to construct the unit.

How it works: Advances are made to the homeowner who then pays the homebuilder in installments.


To qualify: The property is registered in your name and you will own and occupy the home when construction is complete. You do the work, or contract with one or more subcontractors, to build or renovate the property.

How it works: Advances are made to the homeowner.

RTM build

To qualify: The Ready to Move (RTM) builder must be reputable and well-established, and known to Affinity.

How it works: Affinity provides options specific to RTM builds.

Leased land

To qualify: A review of your lease agreement is required to ensure construction adheres the terms set out in the lease agreement.

How it works: Advances can deviate from standard construction schedules and calculations normally set out by a construction mortgage

Construction on spec

To qualify: Homes constructed for speculation purposes (less than four units) are administered as a commercial mortgage.

How it works: While constructing on spec, you will be charged an appropriate application fee and not be eligible for a refund.

Affinity Credit Union must assess the knowledge, skills and abilities of the borrower to manage new home construction and the extent to which this may pose a risk to the Credit Union in the timely and on-budget completion of the build.

Ready to talk more?

Call 1.866.863.6237 to book an appointment and for details on products and special pricing.

Book an appointment

Estimate how much you can afford and start your pre-approval today. 

Mortgage Calculator

Do you need to buy land to build your dream house or RTM?

Speak with an Affinity Advisor first to discuss your options. 

Looking to learn more? Find it here:

  • Are there any fees?

  • What is an advance?

  • Do I need a Line of Credit?

  • What are the steps to getting a Construction Mortgage?

  • What costs can be included in a Construction Mortgage?

  • What is not included?

  • How do progress advances and disbursements work?

  • What are my insurance requirements?

  • When do I sell my current home?