Financing a prefab multiplex

How construction financing works

A construction loan is different from a normal mortgage. Instead of one lump sum, the lender releases money in stages, called draws, as the project reaches milestones. When the homes are finished, the construction loan usually converts into a regular mortgage. This protects both you and the lender by tying the money to real progress.

The prefab twist: paying for the factory stage

With prefab, a large part of the work happens in a factory before anything is standing on your lot. That is great for speed, but it means the money has to be available for the factory stage, not just for work you can see on site. In the past, this did not fit standard draw schedules, which made prefab harder to finance. That has changed.

What changed in 2026

In 2026, CMHC expanded its multi-unit mortgage loan insurance to cover modular construction across its products, including the MLI Select program. Just as important, it introduced staged draws matched to modular milestones, such as purchase, preparation, delivery, and install, rather than one payment at the end. This closed the gap that used to make the factory stage hard to fund, and more lenders now support modular projects.

Source: CMHC, expansion of mortgage loan insurance for prefabricated and modular construction, 2026.

Getting your funding lined up

The practical advice is simple: work with a lender or mortgage professional who has financed modular projects before, so the draw schedule matches when your builder actually needs to be paid. If you would like help, our Project Funding service connects homeowners, builders, and investors with the capital a multiplex project needs, and can point you to people who understand prefab.

Next steps

Before you talk to a lender, it helps to know your numbers. Read what a prefab multiplex costs in BC so you can size the loan, and the build timeline so you understand when payments fall due. When you are ready, tell us about your plan and we will match you with prefab builders and point you toward the right funding help.