Home Buyers who are interested in purchasing a new home through a reputable builder have the advantage of no repairs and maintenance for many years to come. There are two types of Construction mortgage – a Draw Mortgage and a Completion Mortgage.
A “Draw” mortgage means that a portion of the total mortgage amount is advanced to the builder at certain stages of construction. These fund advances are regulated by the lender and is based on strict guidelines set and defined in advance. There are interested charges associated with obtaining a draw mortgage during the construction period and most builders are reimbursing this money back to the home owner.
A “Completion” mortgage means that the full mortgage amount is advanced to the builder upon possession date. There are no interest charges during the construction period to the home owner for this type of mortgage. However, the builder often is usually able to offer a price when using a draw mortgage. We pride ourselves in the volume of business we have done in the construction industry and can help you through the process to make your new built home a stress free mortgage.
