New Construction
Financing for the home you're building, not the one you're buying. The process is different, and the lender selection matters a lot more.
Progress Draws
Unlike a standard purchase mortgage, a construction mortgage doesn't release all funds on day one. Money is advanced in stages, called draws, as construction milestones are completed and verified by an inspector.
Typical draw stages: land and foundation, framing, lock-up (windows and doors), drywall, and completion. Each stage requires an inspection before the next advance is released.
During construction, you typically pay interest only on amounts advanced, not the full mortgage amount. Full amortization begins when the build is complete and the mortgage converts.
01 · Foundation
Land and excavation complete, footings poured
02 · Framing
Structure above foundation, roof decked
03 · Lock-Up
Windows, exterior doors, and roofing installed
04 · Drywall
Interior walls and insulation complete
05 · Completion
Final inspection, occupancy permit issued
Mortgage Types
Funds are advanced only upon completion of the build. Common with builder-sold new construction where the builder carries the cost during construction. Simpler for the buyer: you get a regular mortgage at the end.
Funds are advanced in stages as the build progresses. Used for self-builds and custom homes. You need sufficient cash flow to pay for work between draws, and timing the draws with your builder is critical.
Your Situation
If you're buying from a developer, your financing is relatively straightforward: you get a completion mortgage when the keys are handed over. The key issues are your rate hold period (builds take longer than expected) and assignment clauses.
Self-builds are more complex. You need a lender comfortable with owner-builds or owner-contractor arrangements, an experienced appraiser who can value the completed property, and a solid understanding of draw timing.
Kyle works with both. The lender list is smaller for construction files, which makes the broker relationship more valuable, not less.
Get Started
Not sure if this applies to your situation? One call usually gives you a clear answer.
