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Mortgages designed for homes under construction


A construction mortgage advances you the full amount of the mortgage, in stages, throughout the construction (or major renovations) of your home. You can also get a construction mortgage that acts as a conventional mortgage with additional funds for minor improvements.

Rates and terms for construction mortgages

The type of mortgage you get, as well as your rate and term, will depend on many things. The type of property you’re building, the amount of construction required, how long construction will take - we’ll consider all of that. Come talk to us and we can help figure out exactly what you need.

Construction mortgages:
New build and self-build


If you are building a new home from the ground up, or doing major renovations (either through a professional builder or by yourself), a construction mortgage is your best option.

Worker Constructing

  • How does it work?

    • The mortgage is split into advances that you get in stages throughout the construction or renovation of your home.
    • You can use the first advance to help with the purchase of the land you’re building on.
    • Inspectors visit the property before you get each advance to make sure that construction is going according to plan.
    • Monthly payments are interest-only until the end of construction.
    • After construction, your payments will be a blend of principal and interest.

  • Choose this if...

    • A professional builder is doing the work on your new or renovated home.
    • You can make interest-only payments and still handle any living expenses you have during construction.
    • You can provide us with the required cost estimates, building contract, permits, and quotes.
    • Self-build: If you are building or renovating the home yourself, you must be able to prove that you have the experience and skills needed to complete construction.

Purchase plus improvement mortgage

If you need a mortgage to buy a home, plus additional funds for minor home improvements, a purchase plus improvement mortgage is your best option.

man using beam level

  • How does it work?

    • Improvements can't cost more than 20% of the purchase price, up to a maximum of $40,000.
    • You don’t get the money for improvement up front, you are reimbursed for them once they’re complete.
    • The required down payment depends on the property’s overall value. We look at the value of the property after it’s improved and the original value of the property plus the cost of improvements. The required down payment is based on whichever value is less.
      • So let’s say you paid $700,000 for your home. The improvements cost you $8,000, and your property’s overall value ends up as $710,000. Your down payment is based on the smaller value: $708,000.

  • Choose this if...

    • You’re making minor improvements. If you’re making changes to the structure of your new home you should get a construction mortgage.
    • You can provide details of the proposed renovations, including cost estimates and contracts.
    • You plan to live in this home – you can’t use this mortgage to pay for a rental or investment property.
    • You can pay for the improvements up front – you won’t be reimbursed until they’re complete.

Meridian mortgage perks


Be mortgage-free sooner


We call it 20/20 prepayment. Pay off up to 20% more of your mortgage each year through a combination of prepaying more of your original principal balance and increasing your original mortgage payment.


Skip a payment


Life happens. Breathe easier knowing that you can skip one month’s mortgage payment once every 12 months with no penalty.
 


Flexible schedules


Choose from weekly, bi-weekly, monthly, bi-monthly, or accelerated weekly or bi-weekly payment plans - whatever works for you.


Mortgage protection


Take advantage of CUMIS Group Mortgage Protection (GMP) - a monthly premium that helps safeguard your home in case of financial hardships as a result of conditions such as death, disability or critical illness.


Looking for something else?


Fixed rate mortgages

Lock in a great rate and enjoy interest and payments that stay the same even if the market shifts.

Learn more

Variable rate mortgages

With a rate that goes up or down depending on the market, you could save on interest.

Learn more

High ratio mortgages

Buy with less than 20% down to get into the market faster. Great for first-time buyers.

Learn more

Let's talk about your mortgage

Whether you’re getting your first mortgage, renewing, switching or refinancing, we can help. Feeling good about your mortgage can start with a conversation. Get in touch or arrange for one of our Mortgage Specialists to come to you. It’s easy.