Tight land supply.
Strong end-user demand.
Higher density on smaller footprints.
Yet most infill projects don’t fail because of design, zoning, or resale demand.
They fail because financing breaks down.
Infill Is the Right Idea — With the Wrong Lender
Municipalities love infill.
Investors understand the margins.
End buyers want the product.
Banks, however, still treat infill like it’s experimental.
Their problem isn’t the numbers — it’s the structure.
Why Banks Struggle With Infill Construction
Traditional lenders prefer:
large subdivisions
standardized products
repeatable models
long timelines
Infill projects are the opposite:
small lots
tight setbacks
creative density
phased construction
unconventional exits
Even strong developers hear:
“Too small.”
“Too complex.”
“Not a standard product.”
“Come back when it’s finished.”
By then, the opportunity is gone.
The Real Financing Gaps in Infill Projects
Most infill deals don’t need more money — they need better timing.
Common infill funding issues:
land acquisition before permits
soft costs not covered by banks
delayed draws
appraisals that lag reality
rigid loan-to-cost limits
Banks finance completion.
Infill requires financing execution.
How Private Infill Construction Financing Works
Private lenders underwrite infill projects the way developers actually build them.
The focus shifts from:
❌ rigid formulas
to
✅ real-world feasibility
Key considerations include:
land value and location
zoning status and density
total project cost vs end value
draw schedules aligned with milestones
realistic exit strategies (sale or refinance)
This flexibility is what allows infill projects to move — not stall.
Speed Is a Competitive Advantage
In infill construction, delays are expensive.
Holding costs rise.
Trades get rescheduled.
Permits expire.
Market windows close.
Private infill financing allows developers to:
secure land quickly
start construction sooner
control timelines
maintain momentum
That speed often protects margins more than rates ever could.
Infill Isn’t Risky — Underfunding Is
There’s a misconception that infill projects are “high risk.”
In reality, the risk comes from:
partial funding
misaligned draw structures
slow approvals
lenders unfamiliar with density projects
Well-structured infill developments in strong locations are often more liquid than suburban sprawl.
The Bottom Line
Infill projects don’t fail because they’re unprofitable.
They fail because traditional financing isn’t designed for them.
If your project makes sense on the ground but not on a bank checklist, that’s not a red flag — it’s a signal.
Infill rewards speed, flexibility, and lenders who understand how projects are actually built.
Building an infill project in Ontario?
If funding is the bottleneck, not demand, you’re looking in the wrong place.