If you are building a new home, it is important to speak with your builder to determine the type of financing that is required. When you’re looking into a building a home mortgage, it will generally be one of the following two options:
Option 1: Completion Mortgage.
In this type of mortgage, no funds are released to the builder throughout the process, once the home is complete and you take possession, the builder is paid in full and your new mortgage term will commence with regular monthly mortgage payments!
As with any new home purchase, you will need to avoid doing anything that could change your financial position or your credit score prior to taking possession, such as financing a large purchase or changing jobs. If you have any further questions, don’t hesitate to reach out to one of our mortgage brokers today!