What is a construction mortgage?

A construction mortgage is financing specifically designed for building a new home.

Instead of receiving the full mortgage amount upfront, funds are released in stages, called draws, as construction progresses.

Construction mortgages typically involve:

• A building contract and project timeline

• Appraisals based on projected home value

• Staged funding at key milestones

• Conversion to a traditional mortgage after completion

This structure protects both you and the lender throughout the build.

Why proper structure matters

Cash Flow Planning

Ensure funds are available when your builder needs them.

Budget Control

Confirm construction costs align with lender requirements.

Interest Management

Understand how interest accrues during the build phase.

Long-Term Strategy

Choose the right term and rate once construction is complete.

Is this mortgage right for you?

A construction mortgage may be right for you if:

• You’re building a custom home

• You’ve purchased land and plan to build

• You’re working with a licensed builder

• You want to finance construction in structured stages

Whether you're building in Carleton Place, Perth, Almonte, or surrounding Lanark County communities, I’ll help you structure your financing properly from the start.

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Pre-Approval & Planning

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3

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We review your finances, construction plans, budget, and builder contract to determine eligibility and affordability.

Lender Approval

The lender reviews building plans, costs, and projected value of the finished home.

Construction Draws

Funds are released in stages, and an inspection is usually required before each draw.

Mortgage Conversion

Once construction is complete, the loan converts into a standard mortgage with regular payments.

How It Works

Curious what your monthly payments could look like?

Use the mortgage calculator to explore potential payment scenarios based on projected home value and down payment.

Ready to Build With Confidence?

Contact

613-864-1822
joseline@mulvalemortgages.com

Joseline Mulvale

Mortgage Agent Level 2

#M24002279

Referral Mortgages

FSRA #13316