Construction Mortgage Saskatoon – 306-222-7900 – Deb Murdoch

Construction Mortgage Saskatoon - 306-222-7900 - Deb Murdoch

Construction Mortgage Saskatoon So you think you want to do a build. Well, here’s how mortgages work on a construction loan. Depends on your builder. If you have a builder that requests a progress draw, now, a progress draw means that it’s a construction mortgage where they want to have certain amounts of money at certain stages of the game, so that they can continue to build throughout the build. And they need that cash in order to move to the next step. That is called a progress draw, or a construction mortgage. A construction mortgage, as you get each advance, there;s four of them, as you get eachadvance, you actually pay interest only payments on the amount of money that is paidin each of those advances. When it’s at completion, then you roll it over into a completion mortgage, which is just like a regular mortgage. The other type of mortgage for a builder is a builder will say I want 10 percent down. They might say 10, they might say 15. I want 10 percent down, I’ll build your house, and then I want to be paid at the very end; That is your regular completion mortgage. Usually they ask for a higher deposit than what the minimum deposit is. On a build, it’s five percent, for an owner occupied build, so you only need five percent. But they mightask you for a 10 percent deposit, just to make sure that you’re serious about doing it. That’s fine. Put the 10 percent down, but at the end, when we do the completion mortgage, we can actually do the completion mortgage with a five percent down payment, which means you get a little bit of money back.…

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