Understanding Closing Costs
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
Construction-to-Permanent loans allow borrowers to finance the construction of a new home and transition seamlessly into a long-term mortgage once the build is complete. This structure reduces closing costs, locks financing earlier, and simplifies the process compared to separate construction and mortgage loans.
Simply Approved Mortgages helps borrowers structure construction-to-permanent financing for primary residences, second homes, and investment properties.
Construction-to-Permanent loans combine construction financing and a long-term mortgage into one loan, converting automatically after the build is complete.
A Construction-to-Permanent (C2P) loan is a single loan that covers:
Construction financing during the build
Automatic conversion to a permanent mortgage
One closing instead of two
During construction, borrowers typically make interest-only payments on funds drawn.
Disclaimer: Advertised rates and fees depend on borrower qualifications and market fluctuations.
The process generally follows three phases:
Funds released in draws
Inspections before each draw
Interest-only payments
Final inspection and occupancy
Construction phase ends
Loan converts automatically
Fixed-rate or ARM mortgage begins
No second closing is required.
At Simply Approved Mortgages, our mission is to make homeownership more accessible and affordable. We operate on a lender-paid compensation model, with average compensation of approximately 1.5%, which is generally lower than typical industry ranges. This structure may help reduce certain costs embedded in mortgage transactions, while allowing us to maintain a strong focus on transparency, responsible loan structuring, and service quality.
Disclaimer: Simply Approved Mortgages complies with all state and federal licensing requirements that we are licensed in.
Construction-to-Permanent
One-time close
Common for owner-occupants
Simplified transition to mortgage
Ground-Up Construction (GUC)
Often short-term
Investor or developer focused
Requires separate exit financing
Learn More: 👉 Ground Up Construction Loans
Eligibility depends on:
Credit profile
Down payment or equity contribution
Builder approval
Project plans and budget
Occupancy type (primary, second home, rental)
Owner-occupied projects often have more options.
Construction-to-Permanent loans may be used for:
Custom primary residences
Second homes
Single-family rentals (select programs)
Townhomes and small residential projects
Some investor-focused builds may route into DSCR financing after completion.
Learn More: 👉 DSCR Loans
Loan terms are influenced by:
Credit score and debt ratios
Loan-to-cost (LTC)
Property type and use
Market conditions
Builder experience
Early planning improves approval and pricing.
Mortgage calculators help estimate construction payments and long-term affordability.
Learn More: 👉Mortgage Calculator
For general construction and mortgage education, review:
We operate on a lender-paid compensation model, with average compensation of approximately 1.5%, generally lower than typical industry ranges. This approach may support affordability while providing access to competitive mortgage options.
Our team of seasoned professionals is dedicated to simplifying the mortgage process, providing personalized solutions, and ensuring you feel confident every step of the way.
We prioritize honesty and clarity. From disclosing every detail upfront to ensuring no hidden surprises, we build trust through our commitment to your financial success.
At Simply Approved Mortgages, our mission is to make homeownership more accessible and affordable. We operate on a lender-paid compensation model, with average compensation of approximately 1.5%, which is generally lower than typical industry ranges. This structure may help reduce certain costs embedded in mortgage transactions, while allowing us to maintain a strong focus on transparency, responsible loan structuring, and service quality.
We provide access to competitive mortgage options across a variety of loan programs and terms. Our approach focuses on responsible loan structuring based on lender guidelines and borrower qualifications. Explore our mortgage solutions to better understand your available options and how they may support your homeownership goals.
Getting pre-approved for a mortgage is easy with our online application process. Fill out our secure application form, and our team will review your details quickly, so you can start your mortgage journey with confidence.
Once your application is received, a dedicated mortgage specialist will contact you to discuss your needs and preferences. We’ll work together to find the best mortgage options that align with your goals.
After reviewing and selecting the ideal mortgage plan, we’ll guide you through the approval process and ensure everything is in place for a smooth closing. Soon, you’ll be ready to move into your new home!
Prefer personal guidance? A licensed loan officer is available to help.
It’s a loan that finances construction and converts into a long-term mortgage automatically.
No. They are designed as a one-time close.
Some programs allow it, though many investor projects use GUC or DSCR exits.
Take control of your home-Take the guesswork out of your home-buying journey. Use our Mortgage Calculator to estimate your monthly payments and make informed financial decisions.
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Simply input your details and see how much equity you could access today. If you have questions or need assistance, our team is here to guide you every step of the way.
Get a free credit score check to understand where you are and how to move forward.
Small changes in your credit score can lead to significant savings on your mortgage.
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Remember that a good credit score can lower your interest rate on your mortgage.
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
Reduce your monthly payment or loan term while unlocking the full potential of your home’s equity!