Construction Mortgage

Generally, there are 3 scenarios:

Self-build Home

You are your own contractor, and you hire subcontractors. Mortgage options:

Progress Draw Mortgage
Completion Mortgage

Self-build Turn Key (Builder/Contractor)

An agreement with a contractor to build your home. Mortgage options:

Progress Draw Mortgage
Completion Mortgage

Buying From A Builder (Take Out)

Purchasing a new home. Mortgage options:

Completion Mortgage

What are these mortgages?

Progress Draw Mortgage

As your house is being built, funds get transferred to you in specific intervals. There are generally three to five draws, and at each draw you must get a progress inspection report done.

Completion

You will receive funds only when the house is 100% complete. You are required to make a down payment at the time you put in an offer to purchase the property. The last draw will be the full amount from the progressive draws.