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Private Construction and Renovation Loan Ontario

Getting a construction or renovation loan in Ontario has become far more difficult through traditional banks.
January 30, 2026 by
Private Construction and Renovation Loan Ontario
Admin

Projects stall.

Draws get delayed.

Budgets get squeezed.

Not because the project doesn’t make sense — but because banks are not built for real-world construction timelines anymore.

That’s where private construction and renovation loans in Ontario come in.

Why Banks Say No to Construction & Renovation Loans

Banks prefer simple, low-risk files. Construction and renovation projects are anything but simple.

Common reasons banks decline or delay:

  • renovations before permits are finalized

  • phased construction or partial builds

  • self-employed or investor borrowers

  • mixed-use or non-standard properties

  • slow draw schedules and rigid inspections

  • appraisals that don’t reflect future value

Even strong borrowers with equity are often told:

“Come back when the project is finished.”

That defeats the purpose.

What Is a Private Construction or Renovation Loan?

A private construction or renovation loan is an equity-based mortgage designed to fund:

  • major renovations

  • additions

  • infill projects

  • residential construction

  • value-add improvements

Instead of focusing solely on income formulas, private lenders underwrite:

  • current property value

  • after-repair or after-build value

  • equity position

  • project scope and timeline

This allows projects to start and continue without bank delays.

What Can Be Financed?

Private construction and renovation loans in Ontario are commonly used for:

  • full home renovations

  • kitchen and basement conversions

  • additions and second units

  • duplex / triplex builds

  • infill residential projects

  • investor renovations before resale or refinance

Funds are typically released through structured draws aligned with construction milestones.

Why Speed Matters in Construction Financing

Construction delays are expensive.

Every delay can mean:

  • higher labour costs

  • missed contractor availability

  • permit expirations

  • rising material prices

  • lost resale or refinance windows

Private lenders move faster, allowing:

  • quicker approvals

  • flexible draw schedules

  • fewer re-inspections

  • funding that matches how projects are actually built

Speed protects margins.

How Lendworth Helps Fund Construction & Renovations

Lendworth specializes in private construction and renovation loans across Ontario, helping homeowners and investors move forward when banks won’t.

Borrowers work with Lendworth to:

  • secure fast construction financing

  • fund renovations using existing equity

  • structure draw schedules that match the project

  • avoid stalled builds and missed timelines

Approvals are equity-based, not income-boxed — making them ideal for self-employed borrowers, investors, and developers.

You can apply directly here:

👉 https://www.lendworth.ca/borrow

Is This Long-Term Financing?

In most cases, no.

Private construction and renovation loans are typically short-term solutions, designed to:

  • complete the project

  • increase property value

  • refinance into traditional financing

  • or sell at completion

The goal is flexibility and execution — not permanent debt.

The Bottom Line

Construction and renovation projects don’t fail because they’re bad ideas.

They fail because financing doesn’t keep up.

If your bank can’t fund your renovation or construction project on real timelines, private financing may be the missing piece.

Need a private construction or renovation loan in Ontario?

Don’t let financing delays stall your project.

📞 Call Lendworth today or apply at https://www.lendworth.ca/borrow to explore fast, equity-based construction and renovation financing.