It has a land-use and financing problem.
While governments debate density targets and zoning reforms, the most practical housing solution is already sitting in our cities: infill development.
Small lots.
Existing neighbourhoods.
Underused land.
Gentle density.
Yet despite being one of the lowest-risk ways to add housing, infill remains chronically underfinanced by banks.
Why Infill Actually Works in Canada
Infill isn’t theory. It’s math.
Across Canada, infill projects:
Use existing infrastructure
Add housing where demand already exists
Avoid long approval timelines tied to greenfield sprawl
Support “missing middle” housing (duplexes, triplexes, laneway homes)
Preserve neighbourhood character while increasing supply
In cities like Toronto, Vancouver, and Montreal, infill is quietly doing what mega-developments can’t: delivering homes now, not a decade from now.
Why Banks Still Don’t Understand Infill
From a bank’s perspective, infill projects look messy.
They involve:
Small-scale builders
Non-standard plans
Changing zoning frameworks
Draw schedules
Transitional collateral (old house → new build)
Banks prefer repetition and scale.
Infill requires judgment and flexibility.
So even strong projects get stalled by:
Rigid underwriting
Slow approvals
Conservative draws
Zero tolerance for timeline changes
This disconnect is why infill builders often hear “no” — or worse, “yes, but not yet.”
Infill Isn’t Risky — It’s Misunderstood
Ironically, infill often carries less market risk than large developments.
Why?
Smaller unit counts
Faster build timelines
End buyers already live nearby
Proven resale demand
Lower exposure to market cycles
The risk isn’t the project.
The risk is capital uncertainty.
Why Private Infill Financing Works
Private lenders approach infill the way builders do — as a process.
They focus on:
As-completed value
Conservative loan-to-value ratios
Draw-based funding tied to progress
Builder experience
Clear exit strategies
Not just templates.
That makes private capital especially effective for:
Laneway and garden suites
Duplex and triplex conversions
Small lot redevelopments
Tear-down rebuilds
Phased intensification
Infill Is Where Housing Policy Meets Capital Reality
Governments can approve density all day.
Without funding that moves at the speed of construction, nothing gets built.
Infill succeeds when:
Capital is flexible
Draws are predictable
Timelines are respected
Exits are realistic
Private infill lending fills the gap between policy intent and shovels in the ground.
Why Builders Who Understand Infill Use Private Capital Early
Experienced infill builders don’t wait for banks to “catch up.”
They use private financing to:
Acquire land
Start construction immediately
Maintain momentum
De-risk timelines
Refinance or sell once stabilized
Private capital isn’t the backup plan — it’s often Phase One.
The Bottom Line
If Canada is serious about fixing its housing shortage, infill isn’t optional — it’s essential.
But infill requires lenders who understand:
Urban land
Small-scale development
Construction realities
Banks still don’t.
Private lenders do.
About Lendworth
Lendworth specializes in private infill and construction financing across Ontario, supporting builders and investors who are adding real housing — one lot, one project, one neighbourhood at a time.
Your equity deserves more™.