Island Savings

Construction Mortgage

This mortgage is for you if:

  • you want to have a home designed and built to suit your style
  • you’ll need funds advanced during the construction period
  • you have your eye on a building lot or already own one
  • you're prepared to work with a designer and builder


For members who are looking to build their own home or to engage in large-scale home renovations or expansions, we offer flexible mortgage financing through our progressive draw construction mortgages.

Building a home can be a complicated venture but financing it doesn't have to be.

How It Works

Get advances to pay for building costs. Funds are distributed typically in 3-6 stages (known as draws) throughout the construction period. While construction lasts, you are responsible for interest-only payments. The typical stages are:

  • Purchase of land
  • Foundation: site set-up, excavation, drainage and piping, and slab construction
  • Framing: wall frames, roof trusses, roughing in, plumbing water, plumbing gas, electrical and wrap
  • Lock-up: windows, doors, roofing, drywall, insulation, wiring and plumbing
  • Completion: exterior and interior finishing

After the home is built and ready to occupy, the construction mortgage is converted to a conventional mortgage. That's how we're keeping it simple.

Key Features

  • Available for owner-occupied or rental/investment properties
  • Maximum lending is 80% of appraised value (based on land value and approved plans)
  • Maximum amortization is 25 years
  • Maximum construction term is 12 months

Protection Options

Types of Protection

  • Mortgage life insurance: helps your family retain your home if you (or your co-borrower) die before the mortgage is paid off.
  • Disability coverage: ensures that your mortgage payment will be made in the event you are ill, or injured, or unable to perform your usual job.
  • Loss of employment: ensures that your mortgage payments will be made should you become involuntarily unemployed.
  • Critical illness: pays off your mortgage balance in full if you are diagnosed with life-threatening cancer or suffer a heart attack or stroke.

What You'll Need

What You'll need

If you decide to build your own dream home, we are happy to help! Applying for a construction mortgage is simple, but you'll need to be at least 19 years of age in order to sign all the legal stuff.

Here is the information we'll need to get started:

  • Income Verification
  • Proof of down payment
  • Building plans
  • Detailed cost estimate/budget of the project

Additional documents required prior to approval:

  • Copy of building permits
  • Statement showing available equity to start construction
  • All other necessary project permits (septic, water, etc.)
  • Members building their own homes will require course of construction insurance
  • Full appraisal of plans and specifications
  • Contractor’s HPO accreditation (HPO builder registry)
  • HPO owner builder authorization
  • Title Insurance
  • New Home Warranty insurance
  • Copy of all project contracts

This list of documents is a basic starting point and may not include everything needed to determine the mortgage requirements of your unique situation. Our mortgage advisors will inform you if any other document is necessary to proceed with your application.

Ready to apply? Applying for a mortgage with us is easy!


Applying for a mortgage online just takes a few minutes and just four easy steps!

In Person

We'll leave the choice to you—come in to one of our branches to get approved or have one of our mobile mortgage advisors come to you.

By Phone

If you’d like to call us, here is a complete list of our branch and insurance office numbers.